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Exam: 061683RR - PLANNING, PERFORMANCE

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Question;Exam: 061683RR - PLANNING, PERFORMANCE When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. Use the following information to answer this question. The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information: ? Sales were at $450,000, all for cash. ? Merchandise inventory on October 31 was $200,000. ? The cash balance on November 1 was $18,000. ? Selling and administrative expenses are budgeted at $60,000 for November and are paid for in cash. ? Budgeted depreciation for November is $25,000. ? The planned merchandise inventory on November 30 is $230,000. ? The cost of goods sold is 70% of the selling price. ? All purchases are paid for in cash. 1. The budgeted cash disbursements for November areA. $530,000.B. $345,000.C. $405,000.D. $375,000. Use the following information to answer this question. Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700 client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ___-___ $33.60 Personnel expenses $22,100 $8.70 Medical supplies 1,100 6.60 Occupancy expenses 5,600 1.60 Administrative expenses 3,700 0.40 Total expenses $32,500 $17.30 Actual results for January: Revenue $93,408 Personnel expenses $46,251 Medical supplies $19,348 Occupancy expenses $9,508 Administrative expenses $4,772 2. The activity variance for personnel expenses in January would be closest toA. $261 F.B. $661 F.C. $261 U.D. $661 U. Use the following information to answer this question. Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ____-____ $25.10 Personnel expenses $27,100 $7.10 Medical supplies 1,500 4.50 Occupancy expenses 6,000 1.00 Administrative expenses 3,000 0.10 Total expenses $37,600 $12.70 Actual results for December: Revenue $96,299 Personnel expenses $51,009 Medical supplies $17,425 Occupancy expenses $9,240 Administrative expenses $3,239 3. The spending variance for medical supplies in December would be closest toA. $725 U.B. $725 F. C. $680 U.D. $680 F. 4. Vandall Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Fixed element Variable element per month per unit Revenue ___-___ $35.40 Direct labor 0 $3.30 Direct materials 0 15.90 Manufacturing overhead 49,200 1.20 Selling and administrative expenses 26,600 0.10 Total expenses $75,800 $20.50 Actual results for April: Revenue $254,146 Direct labor $24,722 Direct materials $116,496 Manufacturing overhead $59,608 Selling and administrative expenses $26,494 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest toA. $6,144 U.B. $6,740 F.C. $6,144 F.D. $6,740 U. 5. The company plans to sell 22,000 units of Product WZ in June. The finished-goods inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively. The direct labor hours are 11,000 and the direct labor rate is $10.50. Budgeted direct-labor costs for June would beA. $455,700.B. $234,150.C. $462,000.D. $117,075. 6. Division X of Charter Corporation makes and sells a single product which is used by manufacturers of fork lift trucks. Presently it sells 12,000 units per year to outside customers at $24 per unit. The annual capacity is 20,000 units and the variable cost to make each unit is $16. Division Y of Charter Corporation would like to buy 10,000 units a year from Division X to use in its products. There would be no cost savings from transferring the units within the company rather than selling them on the outside market. What should be the lowest acceptable transfer price from the perspective of Division X?A. $24.00B. $17.60C. $21.40D. $16.00 Use the following information to answer this question. Werber Clinic uses client visits as its measure of activity. During January, the clinic budgeted for 2,700 client visits, but its actual level of activity was 2,730 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ___-___ $33.60 Personnel expenses $22,100 $8.70 Medical supplies 1,100 6.60 Occupancy expenses 5,600 1.60 Administrative expenses 3,700 0.40 Total expenses $32,500 $17.30 Actual results for January: Revenue $93,408 Personnel expenses $46,251 Medical supplies $19,348 Occupancy expenses $9,508 Administrative expenses $4,772 7. The activity variance for administrative expenses in January would be closest toA. $8 U.B. $12 U.C. $8 F.D. $12 F. Use the following information to answer this question. Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ____-____ $25.10 Personnel expenses $27,100 $7.10 Medical supplies 1,500 4.50 Occupancy expenses 6,000 1.00 Administrative expenses 3,000 0.10 Total expenses $37,600 $12.70 Actual results for December: Revenue $96,299 Personnel expenses $51,009 Medical supplies $17,425 Occupancy expenses $9,240 Administrative expenses $3,239 8. The activity variance for personnel expenses in December would be closest toA. $2,361 U.B. $2,361 F.C. $71 U.D. $71 F. Use the following information to answer this question. Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Standard Cost Quantity per bag Direct material 20 pounds $8.00 Direct labor 0.1 hours $1.10 Variable overhead 0.1 hours $0.40 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity: ? Production of Fastgro: 4,000 bags ? Direct materials purchased: 85,000 pounds at a cost of $32,300 ? Direct-labor worked: 390 hours at a cost of $4,875 ? Variable overhead incurred: $1,475 ? Inventory of direct materials on January 31: 3,000 pounds 9. The labor efficiency variance for January isA. $475 F.B. $110 F.C. $350 U.D. $130 U. Use the following information to answer this question. Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Standard Cost Quantity per bag Direct material 20 pounds $8.00 Direct labor 0.1 hours $1.10 Variable overhead 0.1 hours $0.40 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity: ? Production of Fastgro: 4,000 bags ? Direct materials purchased: 85,000 pounds at a cost of $32,300 ? Direct-labor worked: 390 hours at a cost of $4,875 ? Variable overhead incurred: $1,475 ? Inventory of direct materials on January 31: 3,000 pounds 10. The materials price variance for January isA. $1,640 U.B. $1,300 U.C. $1,640 F.D. $1,700 F. 11. The LFM Company makes and sells a single product, Product T. Each unit of Product T requires 1.3 hours of direct labor at a rate of $9.10 per direct-labor hour. LFM Company needs to prepare a direct-labor budget for the second quarter of next year. The budgeted direct-labor cost per unit of Product T would beA. $11.83.B. $7.00.C. $10.40.D. $9.10. 12. The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable factory overhead is $5.00 per direct-labor hour, the budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation. If the budgeted direct-labor time for December is 8,000 hours, then total budgeted factory overhead per direct-labor hour (rounded) isA. $9.38.B. $14.38.C. $16.25.D. $12.50. Use the following information to answer this question. Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ____-____ $25.10 Personnel expenses $27,100 $7.10 Medical supplies 1,500 4.50 Occupancy expenses 6,000 1.00 Administrative expenses 3,000 0.10 Total expenses $37,600 $12.70 Actual results for December: Revenue $96,299 Personnel expenses $51,009 Medical supplies $17,425 Occupancy expenses $9,240 Administrative expenses $3,239 13. The medical supplies in the flexible budget for December would be closest toA. $17,472.B. $18,105.C. $17,378.D. $18,150. 14. The budget or schedule that provides necessary input data for the direct-labor budget is theA. schedule of cash collections.B. cash budget.C. raw materials purchases budget.D. production budget. 15. Super Drive is a computer hard-drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below: Super Drive, Inc. Statement of Financial Position For the year ended November 30 Assets: Cash $52,000 Accounts receivable 150,000 Inventory 315,000 Property, plant, and equipment 1,000,000 Total Assets $1,517,000 Liabilities and stockholders' equity: Accounts payable $175,000 Common stock 900,000 Retained earnings 442,000 Total liabilities and stockholders' equity $1,517,000 Additional information regarding Super Drive's operations appears below: ? Sales are budgeted at $520,000 for December and $500,000 for January. ? Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts. ? 80% of the disk-drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold. ? Payment for components purchased is made in the month following the purchase. ? Assume that the cost of goods sold is 80% of sales. The budgeted cash collections for the upcoming December should be A. $402,000.B. $462,000.C. $520,000.D. $208,000. Use the following information to answer this question. Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows: Standard Standard Cost Quantity per bag Direct material 20 pounds $8.00 Direct labor 0.1 hours $1.10 Variable overhead 0.1 hours $0.40 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct-labor hours. During January, the company recorded the following activity: ? Production of Fastgro: 4,000 bags ? Direct materials purchased: 85,000 pounds at a cost of $32,300 ? Direct-labor worked: 390 hours at a cost of $4,875 ? Variable overhead incurred: $1,475 ? Inventory of direct materials on January 31: 3,000 pounds 16. The labor rate variance for January isA. $585 U.B. $585 F.C. $475 U.D. $475 F. 17. A company's average operating assets are $220,000, and its net operating income is $44,000. The company invested in a new project, increasing average assets to $250,000 and increasing its net operating income to $49,550. What is the project's residual income if the required rate of return is 20%?A. ($600)B. $600C. ($450)D. $450 Use the following information to answer this question. End of exam Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 client visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element Variable element per month per client-visit Revenue ____-____ $25.10 Personnel expenses $27,100 $7.10 Medical supplies 1,500 4.50 Occupancy expenses 6,000 1.00 Administrative expenses 3,000 0.10 Total expenses $37,600 $12.70 Actual results for December: Revenue $96,299 Personnel expenses $51,009 Medical supplies $17,425 Occupancy expenses $9,240 Administrative expenses $3,239 18. The personnel expenses in the planning budget for December would be closest toA. $51,009.B. $53,299.C. $51,147.D. $53,370. 19. There are various budgets within the master budget. One of these budgets is the production budget. Which of the following best describes the production budget?A. It summarizes the costs of producing units for the budget period.B. It details the required raw materials purchases.C. It's calculated based on the sales budget and the desired ending inventory.D. It details the required direct-labor hours. 20. Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?A. An increase in net operating incomeB. A reduction in expensesC. An increase in salesD. An increase in operating assets

 

Paper#45759 | Written in 18-Jul-2015

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