Accounting 220 Final
Terms
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The Waverly Company has budgeted sales for the next year as follows:
Sales in Units
Quar 1; 12,000
Quar 2: 14,000
Quar 3: 18,000
Quar 4: 16,000
The ending inventory of finished goods for each quarter should equal 25% of the -
A. 17,500
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The Tobler Company has budgeted production for next year as follows:
Production in units
Quar 1 10,000
Quar 2 12,000
Quar 3 16,000
Quar 4 14,000
Four lbs of raw materials are required for each unit produced. Raw materials on - A. 63,200
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Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month?
- A. 11,500
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Last month 75,000 pounds of direct material were purchases and 71,000 lbs were used. If actual purchase price per lb was 50 cents more than the standard purchase price per lb, then the material price variance was:
A. 2,000 F
B. 37,500 F
C. - C. 37,500 U
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A favorable labor rate variance indicates that
A. actual hours exceed standard hours.
B. Standard hours exceed actual hours.
C. The actual rate exceeds the standard rate
D. The standard rate exceeds the actual rate. - D. the standard rate exceeds the actual rate.
- Dahl Company, a clothing manufacturer, uses a standard costing system. Each unit of a finished product contains 2 yards of cloth. However, there is unavoidable waste of 20%, calculated on input quantities, when the cloth is cut for assembly. The cost of
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D. 7.50
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If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur?
A. Favorable labor efficiency variance.
B. Favorable labor rate variance.
C. Unfavorable labor efficiency variance.
D. Unfavor - C. Unfavorable labor efficiency variance
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The master budget process usually begins with the:
A. production budget
B. operating budget
C. sales budget
D. cash budget - C. Sales Budget
- Parlee Company sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of the slae, 25% in the month following sale, and 12% in the second month following sale. The remainder are uncollectible. The following are budget
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D. 26,230
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The standards that allow for no matching breakdowns or other work interruptions and that require peak efficiency at all times are referred to as:
A. normal standards
B. practical standards
C. ideal standards
D. budgeted standards - C. Ideal standards
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The budget or schedule that provides neccesary input data for the direct labor budget is the:
A. raw materials purchases budget.
B. Production budget.
C. schedule of cash collections
D. cash budget - B. Production budget
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An unfavorable labor efficiency variance indicates that:
A. the actual labor rate was higher than the standard labor rate.
B. The labor rate variance must be unfavorable.
C. Actual labor hours worked exceeded standard labor hours for the p - Actual labor hours worked exceeded standard labor hours for the production level acheived.
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The materials purchase budget:
A. is the beginning point in the budget process.
B. must provide for desired ending inventory as well as production.
C. is accompanied by a schedule of cash collections
D. is completed after the cash bud - B. must provide for desired ending inventory as well as for production
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Information on Fleming COmpany's direct material costs follows:
Actual amount of direct materials used: 20,000 lbs
Acutal direct material costs:
$40,000
Standard price of direct materials: 2.10 per lb.
Direct material efficiency - C> 2000 favorable
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The usual starting point in budgeting is to make a forecast of cash receipts and cash disbursements:
True or False - False