ACC 211: Test 3 – Flashcards

Dallas Corporation had beginning inventory of 19,200 units and expects sales of 89,000 units during the year. Desired ending inventory is 18,300 units. How many units should Dallas Corporation? produce?

The? ________ is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process.

"The comprehensive? budget" is best described by which of the following? terms?

Which of the following is a potential disadvantage of participative? budgeting?

Strategic planning is beneficial because the organization can

Fosnight Enterprises prepared the following sales? budget: Month Budgeted Sales March $9,000 April $12,000 May $14,000 June $10,000 The expected gross profit rate is 10?% and the inventory at the end of February was $14,000. Desired inventory levels at the end of the month are 10?% of the next? month's cost of goods sold. What are the total purchases budgeted for? May?

Which of the following is an advantage of zero?based ?budgeting?

Fosnight Enterprises prepared the following sales? budget: Month Budgeted Sales March $7,000 April $12,000 May $14,000 June $13,000 The expected gross profit rate is 10?% and the inventory at the end of February was $8,000. Desired inventory levels at the end of the month are 20?% of the next? month's cost of goods sold. What is the budgeted cost of goods sold for? May?

Mockingbird Company expects to sell 5,300 bird perches in January and 7,000 in February for $4 each. What will be the total sales revenue reflected in the sales budget for those? months?

The? ________ budget begins with the number of units to be sold.

The? ________ budget is a component in a financial budget.

On the direct materials? budget, the total quantity of direct materials to purchase is computed as

What will happen to return on investment? (ROI) if current assets decrease while everything else remains the same? (assume the current assets decreased is part of operating current? assets)?

Ringo Corporation had the following results last year? (in thousands).? Management's target rate of return is? 15% and the weighted average cost of capital is? 10%. Its effective tax rate is? 35%. Sales ?$20,000,000 Operating income ?4,000,000 Total assets ?8,000,000 Current liabilities ?4,820,000 What is the? division's Return on Investment? (ROI)?

Which term below best fits? "a part,? segment, or subunit of a company whose manager is accountable for specified? activities"?

With regard to a static budget instead of a flexible? budget, which of the following is true??

Rider Company had the following financial results for last month. Which type of responsibility center do these financial results? reflect?

Summer Nights sells bottles of bug spray for? $6.50 each. Variable costs are? $3.00 per? bottle, while fixed costs are? $44,000 per month for volumes up to? 30,000 bottles of spray and? $54,000 per month for volumes above? 30,000 bottles of spray. The flexible budget would reflect monthly operating income for? 19,000 bottles of spray and? 24,000 bottles of spray of what dollar? amounts?

he? ________ is the optimum budget to managers that plan revenues and expenses at different sales volumes.

Assume the Air Conditioning division of the General Appliance Corporation had the following results last year? (in thousands).? Management's target rate of return is? 15% and the weighted average cost of capital is? 10%. Its effective tax rate is? 35%. Sales ?$10,000,000 Operating income ?2,000,000 Total assets ?2,500000 Current liabilities ?820,000 What is the? division's capital? turnover?

Management by? ________ is the practice that directs executive attention to large budget variances.

A company uses sugar in producing its product. If the price of sugar? doubles, which variance is directly? impacted?

The Armstrong Corporation developed a flexible budget for its production process. Armstrong budgeted to use? 16,000 pounds of direct material with a standard cost of? $18 per pound to produce? 12,000 units of finished product. Armstrong actually purchased? 18,000 pounds and used? 17,000 pounds of direct material with a cost of? $21 per pound to produce? 12,000 units of finished product. Given these? results, what is? Armstrong's direct material price? variance?

Theresa? Corporation, which manufactures? baskets, is developing direct labor standards. The basic direct labor rate is $ 21$21 per hour. Payroll taxes are 1010?% of the basic direct labor? rate, while fringe benefits such as vacation and health care? insurance, are $ 9$9 per hour. What is the standard rate per direct labor? hour?

The direct materials price variance is calculated as

Jackson Industries has collected the following data for one of its? products: Direct materials standard ?(88 pounds per unit? @ $ 0.53$0.53?/lb.) $ 4.24$4.24 per finished good Direct materials flexible budget varianceminus?unfavorable $ 9 comma 000$9,000 Actual Direct Materials Used? (AQU) 38 comma 00038,000 pounds Actual finished goods produced 28 comma 00028,000 units How much is the direct materials quantity? variance?

Sandy's Sauces, which produces stirminus?fry ?sauces, is developing direct material standards. Each bottle of sauce requires 0.610.61 kilograms of base. The allowance for waste is 11 kilograms per? bottle, while the allowance for rejects is 0.70.7 kilograms per bottle. What is the standard quantity of base per? bottle?

Active Lifestyle Beverages gathered the following information for Job? #928: Standard Total Cost Actual Total Cost Direct? materials: ?Standard: 2,200 pints at? $4.75/pint ?$10,450 ?Actual: 2,450 pints at? $5.00/pint ?$12,250 What is the direct materials quantity? variance?

Hushovd Iron Works has collected the following data for its Thunderbolt line of? products: Direct materials standard 10 pounds per unit Direct materials standard cost ?$0.75 per pound Actual Direct Materials Used? (AQU) ?40,000 pounds Actual finished goods purchased ?4,500 units What is the direct materials quantity? variance?

Jackson Industries has collected the following data for one of its? products: Direct materials standard ?(66 pounds per unit? @ $ 0.49$0.49?/lb.) $ 2.94$2.94 per finished good Direct materials flexible budget varianceminus?unfavorable $ 13 comma 000$13,000 Actual Direct Materials Used? (AQU) 133 comma 000133,000 pounds Actual finished goods produced 29 comma 00029,000 units What is the total actual cost of the direct materials? used?

The direct materials flexible budget variance can be divided into which of the following two? variances?

Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter? (flour is a direct material for cupcakes and butter is a direct material for? cookies): Flour? (Direct Materials) Cupcakes Butter? (Direct Materials) Cookies Standard quantity per batch 2 lbs. 3 lbs. Standard Price? (SP) per pound ?$2.50/lb ?? Actual quantity purchased? (AQP)and used per batch? (pounds) ?? 4 lbs. Actual Price? (AP) paid ?$3.00/lb. ?$5.50/lb. Price variance ?$300 U ?$1,200 U Quantity variance ?$500 F ?? Flexible budget variance ?? ?$3,100 U Number of units produced 350 400 What is the direct materials flexible budget variance for the flour in? cupcakes?

Which variance is directly impacted if a worker drops the raw material during production and the raw material must be? discarded?