Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?
0 Sales budget, cash budget, direct materials budget, direct labor budget
0 Production budgetI sales budget, direct
2. Complete the oompany's direct labor budget for the upcoming scal year, assuming that the direct labor
workforce is not adjusted each quarter. Instead. assume that the companys direct labor workforce
consists of permanent employees who are guaranteed to
The actual results for July appear belmv:
Fcrthe Month Ended July 31
Actual pounds tun-:1:
Packing supplies 2,9?D
Oyster had maintenance 3,450
Wages and salaries 6.45!)
E 0 Cost reports are ineffective as budgeted costs at one level of activity is compared to actual costs
at another level of activity
0 Cost reports shows whether xed costs are controlled and do not show whether variable costs
E| a Cost repo
Isiala Ba:r Teurs aperatas deg:r teurs at seestal glaciers in Alaska en its teur beat the Emerald Glacier.
Management has identied bva east driversthe number at bruises and the number at passengersthat it
uses in its budgeting and perfarrnanae raperts. Th
May 31 accounts payable balance |$ QWI
|Total cash payments 5 EDDIE!
expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month.
a. The note payable on the May 31 balance sheet will be paid doling June. The com
2. Assume that the company will prepare a budgeted balance sheet as of September 30. Compute the
accounts receivable as of that date. cfw_Do not round Intermediate calculations]
September sales 400.000
Total accounts receivable F 5 490.000
U! HulaI- mlw
Micro ProductsI Inc.I has developed a veryr powerful electronic calculator. Each calculator requires three
small 'chips' that cost $2 each and are purchased from an overseas supplier. Micro Products has prepared
a production budget for the calculator by q
2. Compute the oompanfa manufacturing overhead rate [including both variable and xed manufacturing
overhead) for the upcoming scal year.
Total budgeted manufacturing overhead for the year 3 1?5,?00
Total budgeted direot laborhours for the year 20,400
Gntal Telemm has budgeted the sales of its innovative rnpbile phene ever the next four manths ae
Babe in Lil'iil
The earnpanv is new in the preeeea at preparing a praduatien budget far the third quarter.
Bosnia Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning
its costs and its activity based costing system:
Wages and salaries $260,000
cfw_Ignore income taxes in this problem.) Houis inc. is considering the acquisition ofa new machine that costs $300,000 and has a useful life of 5
years with no saivage value. The incremental net operating income and incremental net cash flows that wouid
Freestone Company is considering renting MachineY to replace Machine X. It is expected thatY will waste less direct materials than does X lfY is
rented, X will be sold on the open market For this decision, which ofthe following factors islare relevant?
cfw_Ignore income taxes in this problem.) Duhl Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $125,1T5, would have a
useful life of 5 years. and would have no salvage value. The tractor-trailer would he used in the compa
In a sell c-r preceea further clecieic-n, which ef the fellcuwing ccrete are relevant?
I. t 1urariahle prcducticn cost incurred pric-r tn the aplitcFF paint.
II. An avuiclable xecl preci uctien cuet incurred after the spliteff paint.
0 Dntyr I.
a . Dniy I
Which of the following is not a [imitation of activity-based oosti ng?
O Maintaining an activitybased costing system is more costly than maintaining a traditional direct labor-based costing system.
0 Changing from a traditional direct labor-based costing
Property taxes are an example of a cost that would be considered to be:
a . Organization-sustaining.
Organizationsustaining activities are carried out regardlees cfwhich customers are served. which products are p
Mckerchie inc. manufactures industrial components. One of its products. which is used in the construction ofindustrial air conditioners, is known as
662. Data concerning this product are given below:
Selling price . $ 160
Direct materials . 513
cfw_Ignore income taxes in this problem.) The management ofRuselt Corporation is considering a project that would require an investment 011232000
and would last for 6 years. The annual net operating income from the project would be $107,000. which inchdes
Spendlove Corporation has provided the foliowing data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly . $1 ,1 14,920 5 1000 machine-hours
Processing orders.-. $471,016 1,800 orders
Inspection. $10?,323 1,560 i
Craft Company produces a singie product. Last year. the company had a net operating income of $00.000 using absorption costing and $74,500
using variable costing. The fixed manufacturing overhead cost was $5 per unit. There were no beginning inventories.
cfw_Ignore income taxes in this problem.) Sam WEEIEI is thinking ofinvesting $70,000 to start a bookstore. Sam plans to withdraw $15,000 from the
business at the end of each year for the next ve years. At the end of the fth year, Sam pians to sell the bus
Olds lnc. which produces a single product. has provided the following data for its most recent month of operations:
Number of units produced . 1,000
Variable costs per unit:
Direct materials $50
Direct labor . $4?
Variable manufacturing overhead . $2
cfw_lg nore income taxes in this problem.) The management of Dittriclc Corporation is considering the following three investment projects:
Project I Project J Project K
Investment required $13,000 $41,000 $93,000
Present value ofcash inows $13,520 $43,150
A customer has requested that lnga Corporation ll a special order for 2,000 units of product K81 for $25.00 a unit. While the product would be
modified slightly for the special order, product K81's normal unit product cost is $1990:
Direct materials . . .
cfw_Ignore income taxes in this problem.) Chow I.'.':ompan1_.|r has gathered the following data on a proposed investment project
Investment required in equipment $142,5D
Annual cash Inows $30,0
Salvage value . $0
Life ofthe investment. 8 years
Ekmark Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pools Activity Rate
Assembling products $6.56 per assembly hour
Processing customer ordersumnm $65.38 per customer ord
Resendes Reners. |nc. processes sugar cane that it purchases from farmers. Sugar cane is processed in batches; A batch of sugar cane costs $43
to buy from farmers and $15 to crush in the company's plant Two intermediate products, cane ber and canejuice, e
cfw_Ignore income taxes in this problem.) Chow (.'Zompang.r has gathered the following data on a proposed investment project
Investment required in equipment $142,500
Annual cash Inows $30,000
Salvage value . $0
Life of the investment . 8 years
cfw_Ignore income taxes in this problem Tu Corporation is investigating automating a process by purchasing a machine for $423,000 that would have
a 9 year useful life and no salvage value. By automating the process1 the company would save $112,000 per yea
cfw_Ignore income taxes in this problem The management of Hirsh Corporation is investigating an investment in equipment that would have a useful life
0) years; The company uses a discount rate of1396 in its capital budgeting. The net present value of the