Ratchet Manufacturing's August sales budget calls for sales of 5,000 units. Each month's sales are expected to exceed the prior month's results by 6%. The product selling price is $20 per unit. The expected total sales dollars for September's sales budget are: $100,000. $94,000. $106,000. $112,000. $5,300. Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $6,300. Borrow $10,000. Repay $6,300. Repay $3,700. Borrow $6,400. Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 84,000 August 104,000 September 114,000 Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is: $34,200. $107,000. $186,800. $114,000. $72,800. The Gardner Company expects sales for October of $244,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $65,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet? $109,800. $122,000. $65,000. $67,100. $134,200. Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $755,000 and cost of goods sold is 40% of sales. The expected selling expenses are $83,500 and the expected general and administrative expenses are $92,500, which includes $25,500 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is: $453,000. $193,900. $277,000. $85,200. $83,100. Claremont Company specializes in selling refurbished copiers. During the month, the company sold 190 copiers for total sales of $608,000. The budget for the month was to sell 185 copiers at an average price of $3,400. The sales price variance for the month was: $21,000 unfavorable. $21,000 favorable. $38,000 unfavorable. $34,000 unfavorable. $38,000 favorable. Claremont Company specializes in selling refurbished copiers. During the month, the company sold 220 copiers at an average price of $3,800 each. The budget for the month was to sell 215 copiers at an average price of $4,000. The expected total sales for 220 copiers were: $836,000. $880,000. $817,000. $860,000. $558,000. Ship Co. produces storage crates that require 35.0 meters of material at $0.30 per meter and 0.30 direct labor hours at $13.00 per hour. Overhead is applied at the rate of $11 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card? $34.50. $25.40. $7.20. $14.40. $17.70. A company's flexible budget for 14,000 units of production showed total contribution margin of $42,000 and fixed costs, $40,000. The operating income expected if the company produces and sells 26,000 units is: $38,000. $46,000. $4,000. $2,000. $51,429. Based on a predicted level of production and sales of 32,000 units, a company anticipates total contribution margin of $108,800, fixed costs of $64,000, and operating income of $44,800. Based on this information, the budgeted operating income for 29,000 units would be: $44,800. $140,800. $34,600. $107,034. $108,800. A company provided the following direct materials cost information. Compute the total direct materials cost variance. Standard costs assigned: Direct materials standard cost (415,000 units @ $4.00 / unit) $ 1,660,000 Actual costs: Direct Materials costs incurred (413,750 units @ $4.20 / unit) $ 1,737,750 $77,750 Unfavorable. $77,750 Favorable. $82,750 Favorable. $82,750 Unfavorable. $5,000 Favorable. Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is: Direct materials standard (3 lbs @ $1/lb) $3 per finished unit Total direct materials cost variance—unfavorable $14,250 Actual direct materials used 100,000 lbs. Actual finished units produced 25,000 units $14,250 favorable. $25,000 favorable. $10,750 favorable. $14,250 unfavorable. $25,000 unfavorable. A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,100 units and was completed in 20,300 hours at a total labor cost of $198,000. What is the direct labor rate variance?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Ratchet Manufacturing's August sales budget calls for sales of 5,000 units. Each month's sales are expected to exceed the prior month's results by 6%. The product selling price is $20 per unit. The expected total sales dollars for September's sales budget are:
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$100,000.
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$94,000.
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$106,000.
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$112,000.
-
$5,300.
Western Company is preparing a
cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:-
Borrow $6,300.
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Borrow $10,000.
-
Repay $6,300.
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Repay $3,700.
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Borrow $6,400.
Frankie's Chocolate Co. reports the following information from its sales budget:
Expected Sales: July $ 84,000 August 104,000 September 114,000 Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
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$34,200.
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$107,000.
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$186,800.
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$114,000.
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$72,800.
The Gardner Company expects sales for October of $244,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted
Accounts Receivable on September 30 is $65,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet?-
$109,800.
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$122,000.
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$65,000.
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$67,100.
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$134,200.
Calgary Industries is preparing a
budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $755,000 and cost of goods sold is 40% of sales. The expected selling expenses are $83,500 and the expected general and administrative expenses are $92,500, which includes $25,500 ofdepreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:-
$453,000.
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$193,900.
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$277,000.
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$85,200.
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$83,100.
Claremont Company specializes in selling refurbished copiers. During the month, the company sold 190 copiers for total sales of $608,000. The budget for the month was to sell 185 copiers at an average price of $3,400. The sales price variance for the month was:
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$21,000 unfavorable.
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$21,000 favorable.
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$38,000 unfavorable.
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$34,000 unfavorable.
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$38,000 favorable.
Claremont Company specializes in selling refurbished copiers. During the month, the company sold 220 copiers at an average price of $3,800 each. The budget for the month was to sell 215 copiers at an average price of $4,000. The expected total sales for 220 copiers were:
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$836,000.
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$880,000.
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$817,000.
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$860,000.
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$558,000.
Ship Co. produces storage crates that require 35.0 meters of material at $0.30 per meter and 0.30 direct labor hours at $13.00 per hour. Overhead is applied at the rate of $11 per direct labor hour. What is the total
standard cost for one unit of product that would appear on a standard cost card?-
$34.50.
-
$25.40.
-
$7.20.
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$14.40.
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$17.70.
A company's flexible budget for 14,000 units of production showed total contribution margin of $42,000 and fixed costs, $40,000. The operating income expected if the company produces and sells 26,000 units is:
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$38,000.
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$46,000.
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$4,000.
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$2,000.
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$51,429.
Based on a predicted level of production and sales of 32,000 units, a company anticipates total contribution margin of $108,800, fixed costs of $64,000, and operating income of $44,800. Based on this information, the budgeted operating income for 29,000 units would be:
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$44,800.
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$140,800.
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$34,600.
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$107,034.
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$108,800.
A company provided the following direct materials cost information. Compute the total direct materials cost variance.
Standard costs assigned: Direct materials standard cost (415,000 units @ $4.00 / unit) $ 1,660,000 Actual costs: Direct Materials costs incurred (413,750 units @ $4.20 / unit) $ 1,737,750 -
$77,750 Unfavorable.
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$77,750 Favorable.
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$82,750 Favorable.
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$82,750 Unfavorable.
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$5,000 Favorable.
Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:
Direct materials standard (3 lbs @ $1/lb) $3 per finished unit Total direct materials cost variance—unfavorable $14,250 Actual direct materials used 100,000 lbs. Actual finished units produced 25,000 units -
$14,250 favorable.
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$25,000 favorable.
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$10,750 favorable.
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$14,250 unfavorable.
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$25,000 unfavorable.A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,100 units and was completed in 20,300 hours at a total labor cost of $198,000. What is the direct labor rate variance?
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