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Second%20Chance%20Exam%20#3

# Second%20Chance%20Exam%20#3 - 1 X Company's budgeted...

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1. X Company's budgeted overhead cost function for the year was \$440,000 + \$5.30X, where X represents the number of units produced. For the year, budgeted production was 10,000 units, and actual production was 14,000 units. What was the static budget for the year? \$440,000 + \$5.30x10,000 = \$493,000 2. The following data is available for X Company for 2007: Estimated production 3,400 Budgeted fixed utility costs \$13,000 Budgeted variable utility costs \$23,154 Actual production 2,600 Actual total utility costs \$24,214 What was the flexible budget variance for total utility costs in 2007 (assume that a positive number means a favorable variance and a negative number means an unfavorable variance)? 3. The following events occurred during the year for X Company, an advertising agency: Performed services for clients on account \$9,504 Performed services for clients for cash \$3,822 Incurred operating expenses on account \$5,014 Paid salaries to employees \$1,649 Collected cash from accounts receivable \$1,005 Paid cash on accounts payable \$3,942 What was net income under the cash method for the year?

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