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Exam 13: Budgeting and Standard Cost Systems

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Question 71

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Standards that represent levels of operation that can be attained with reasonable effort are called:

A) theoretical standards.
B) ideal standards.
C) reasonable standards.
D) normal standards.

E) All of the above
F) A) and B)

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Question 72

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The treasurer of Unisyms Company has accumulated the following budget information for the first two months of the coming year:

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Unisyms Company Cash Budget For the Two ...

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Question 73

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Supervisor salaries,maintenance,and indirect factory wages would normally appear in the selling and administrative expenses budget.

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual was 800 units at $12,the direct materials price variance was $800 favorable.

The budgeted direct materials purchases are normally computed as the sum of (1)the materials for production and (2)the desired beginning inventory.

The budgeted volume of production is based on the sum of (1)the expected sales volume and (2)the desired ending inventory,less (3)the estimated beginning inventory.

The following data is given for the Walker Company:

Refer to the information provided for Kohlman Company.The cash payments for manufacturing in the month of April are:

If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the direct labor time variance was $1,700 favorable.

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:

Frogue Corporation uses a standard cost system.The following information was provided for the period that just ended:

In preparing flexible budgets,the first step is to identify the fixed and variable components of the various costs and expenses being budgeted.

The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead)based on 100% capacity of 42,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows:

Microfix Company manufactures two models of Television,AR30 and AR33.Based on the following production data for April of the current year,prepare a production budget for April.

An unfavorable volume variance may be due to a failure of supervisors to maintain an even flow of work.

The budgeted direct materials purchases are based on the sum of (1)the materials needed for production and (2)the desired ending materials inventory,less (3)the estimated beginning materials inventory.

Refer to the information provided for Frogue Company.The variable factory overhead controllable variance is:

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual was 600 hours at $17,the time variance was $1,500 favorable.

Budgets are normally used by both profit-making businesses and nonprofit organizations.

As of January 1 of the current year,the Butner Company had accounts receivables of $50,000.Sales for January,February,and March were as follows: $120,000,$140,000,and $150,000.20% of each month's sales are for cash.Of the remaining 80% (the credit sales) ,60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the total cash collected (both from accounts receivable and for cash sales) in the month of February?