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1. Rogers Corporation is preparing its cash budget for July.

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Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.;Reference: 9-19;To attain its desired ending cash balance for July, the company should borrow;Student Response Value Correct Answer Feedback;A. $30,000;B. $0;C. $3,000 100%;D. $57,000;General Feedback: Excess cash available over disbursements = Beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements = $25,000 + $141,000 - $139,000 = $27,000;Borrowing = Desired ending cash balance - Excess cash available over disbursements = $30,000 - $27,000 = $3,000;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 8;Level: Easy;Score: 5/5;2.;The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in February. The variable overhead rate is $3.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All other fixed manufacturing overhead costs represent current cash flows.;Reference: 9-16;The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be;Student Response Value Correct Answer Feedback;A. $24,640;B. $33,760;C. $30,080 100%;D. $5,440;General Feedback;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 6;Level: Easy;Score: 5/5;3.;An organization's budget program should not be used;Student Response Value Correct Answer Feedback;A. to motivate employees.;B. to assign blame to managers that do not meet budgetary goals. 100%;C. to help evaluate managers.;D. to allocate resources to the various parts of an organization.;General Feedback: AACSB: Reflective Thinking;AICPA BB: Critical Thinking, Resource Management;AICPA FN: Reporting;LO: 1;Level: Easy;Score: 5/5

 

Paper#27348 | Written in 18-Jul-2015

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