Exam II questions QMT Ians

# Exam II questions QMT Ians - Smith Company makes and sells...

This preview shows pages 1–4. Sign up to view the full content.

Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of \$9.60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year. The budgeted direct labor cost per Pod would be: a. \$7.38. b. \$11.00. c. \$9.60. d. \$13.44. A company plans on selling 400 units. The selling price per unit is \$5. There are 40 units in beginning inventory, and the company would like to have 75 units in ending inventory. How many units should be produced for the coming period? a. 2,000. b. 400. c. 365. d. 435. e. 2,035. Young Enterprises has budgeted sales in units for the next five months as follows: June July August September October 4,600 units 7,200 units 5,400 units 6,800 units 3,800 units Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. The total number of units to be produced in July is: a. 7,200 units. b. 7,020 units. c. 7,740 units. d. 7,280 units.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Trumbull Company budgeted sales on account of \$120,000 for July, \$211,000 for August, and \$198,000 for September. Collection experience indicates that none of the budgeted sales will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be: a. \$169,800. b. \$197,880. c. \$194,760. d. \$147,960. The Khaki Company has the following budgeted sales data: Credit Sales Cash Sales January \$ 400,000 \$ 70,000 February \$ 350,000 \$ 90,000 March \$ 300,000 \$ 80,000 April \$ 320,000 \$ 70,000 The regular pattern of collection of credit sales is 40% in the month of sale, 50% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on February 28 would be: a. \$175,000. b. \$250,000. c. \$210,000. d. \$215,000. Which of the following is NOT one of the three conditions necessary to be classified as a discretionary activity? a. The activity increases efficiency. b. The change of state was not achievable by preceding activities. c. The activity enables other activities to be performed. d. The activity produces a change of state. In describing the cost equation, Y = a + bX, "a" is: a. The dependent variable, cost. b. The independent variable, the level of activity. c. The total fixed costs. d. The variable cost per unit of activity. The Chief Financial Officer (Controler) of an organization is the member of the top management team
who is given the responsibility of providing timely and relevant data to support planning and control activities and of preparing financial statements for external users. a. True

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/15/2009 for the course DFSDF sdfs taught by Professor Fsdf during the Spring '09 term at Academy of Design Tampa.

### Page1 / 11

Exam II questions QMT Ians - Smith Company makes and sells...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online