ACCT 102 CH 7 & 8

Bengal Company provides the following unit sales forecast for the next three months:
 

  July August September Sales units 4,800 5,500 5,360

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,200 units. The budgeted production units for July are:

• 6,000 units.

• 3,600 units.

• 6,175 units.

• 2,400 units.

• 4,975 units.

A merchandiser, provides the following information for its December budgeting process:

 

November 30 inventory 1,800 units Budgeted sales for December 4,500 units Desired December 31 inventory 3,150 units

 
Budgeted purchases in December are:

• 4,500 units.

• 5,850 units.

• 6,300 units.

• 7,650 units.

• 3,150 units.

Southland Company is preparing a cash budget for August. The company has $17,900 cash at the beginning of August and anticipates $122,600 in cash receipts and $136,300 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:

• $0.

• $10,000.

• $5,800.

• $7,900.

• $27,900.

Janitor Supply produces an industrial cleaning powder that requires 22 grams of material at $0.10 per gram and 0.35 direct labor hours at $18.00 per hour. Overhead is applied at the rate of $17 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

• $12.25.

• $28.10.

• $14.45.

• $8.50.

• $8.15.

A company's flexible budget for 15,000 units of production showed per unit contribution margin of $4.00 and fixed costs, $33,000. The income expected if the company produces and sells 20,000 units is:

• $47,000.

• $2,000.

• $80,000.

• $27,000.

• $33,000.

The standard materials cost to produce 1 unit of Product R is 8 pounds of material at a standard price of $53 per pound. In manufacturing 6,000 units, 47,000 pounds of material were used at a cost of $54 per pound. What is the total direct materials variance?

• $48,000 unfavorable.

• $54,000 unfavorable.

• $54,000 favorable.

• $6,000 unfavorable.

• $6,000 favorable.

Grant Company uses the following standard to produce a single unit of its product: Variable overhead (2.60 hours per unit @ $4.70/hour) Actual data for the month show total variable overhead costs of $485,480, and 39,000 units produced. The total variable overhead variance is:

• $8,900F.

• $8,900U.

• $164,877U.

• $164,877F.

• $0.

Cavern Company's output for the current period results in a $6,500 unfavorable direct material price variance. The actual price per pound is $62.00 and the standard price per pound is $60.00. How many pounds of material are used in the current period?

• 6,500.

• 9,750.

• 3,250.

• 3,145.

• 9,645.

A company's flexible budget for 15,000 units of production showed sales, $90,000; variable costs, $37,500; and fixed costs, $25,000. The sales expected if the company produces and sells 19,000 units is (Do not round intermediate calculations):

• $9,833.

• $114,000.

• 27,500.

• $34,833.

• $96,250.

Flagstaff Company has budgeted production units of 8,000 for July and 8,200 for August. The direct labor requirement per unit is 0.60 hours. Labor is paid at the rate of $20 per hour. The total cost of direct labor budgeted for the month of August is:

• $96,000.

• $4,920.

• $98,400.

• $4,800.

• $194,400.