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Unformatted text preview: 1. value: 2 points MC Qu. 15 The materials purchase budget: The materials purchase budget: is accompanied by a schedule of cash collections. must provide for desired ending inventory as well as for production. is the beginning point in the budget process. is completed after the cash budget. References 2. value: 2 points MC Qu. 27 The PDQ Company makes collections on credit ... The PDQ Company makes collections on credit sales according to the following schedule: 25% in month of sale 70% in month following sale 4% in second month following sale 1% uncollectible The following sales have been budgeted: Cash collections in June would be: $110,000 $111,000 $115,500 $113,400 3. value: 2 points MC Qu. 33 Fab Manufacturing Corporation manufactures and... Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales at Fab (in units) for the next three months are as follows: Fab likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. How many mugs should Fab plan on producing during the month of November? 26,800 mugs 25,900 mugs 23,200 mugs 34,300 mugs 4. value: 2 points TF Qu. 3 Budgets are used for planning rather than... Budgets are used for planning rather than for control of operations. True False 5. value: 2 points MC Qu. 20 Which of the following is not a benefit of ... Which of the following is not a benefit of budgeting? It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts. It uncovers potential bottlenecks before they occur. It ensures that accounting records comply with generally accepted accounting principles. It provides benchmarks for evaluating subsequent performance. 6. value: 2 points MC Qu. 39 Brummitt Corporation is working on its direct... Brummitt Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.50 per direct labor-hour. The production budget calls for producing 9,100 units in May and 8,800 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?...
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- Spring '11