Question :
151.The results of operations for the Budget Pesticides, for the : 1302860
151.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
How much is the budgeted cash disbursements for materials in the first quarter of 2015?
A.$176,400
B.$288,400
C.$70,560
D.$115,360
152.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
If total cash disbursements are budgeted at $479,472, how much is the budgeted cash at the end of the first quarter of 2015?
A.$615,000
B.$135,600
C.$150,600
D.$165,528
153.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
How much is the budgeted Accounts Receivable at the end of the first quarter of 2015?
A.$600,000
B.$615,000
C.$315,000
D.$300,000
154.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
How much is the budgeted Accounts Payable for materials at the end of the first quarter of 2015?
A.$47,040
B.$117,600
C.$70,500
D.$291,760
155.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
No new plant assets were acquired. How much is the budgeted book value of the plant assets at the end of the first quarter of 2015?
A.$46,000
B.$47,000
C.$43,000
D.$53,000
156.The results of operations for the Budget Pesticides, for the fourth quarter of 2014 were as follows:
Sales of bug spray $600,000
Variable cost of goods sold 280,000
Contribution margin 320,000
Fixed production costs $70,000
Fixed selling and administrative expenses 30,000 100,000
Income before taxes 220,000
Income taxes 88,000
Net income $132,000
Budget Pesticide uses the variable costing method. The company’s balance sheet reported the following amounts as of the end of the fourth quarter of 2014:
Cash$ 30,000Accounts payable$ 44,800
Accounts receivable300,000Common stock140,200
Fixtures and equipment130,000Retained earnings195,000
Accumulated depreciation80,000
Additional information:
1.Sales and variable costs of sales are expected to increase by 5% in the next quarter.
2.All sales are on credit with 50% collected in the quarter of sale and 50% collected in the following quarter.
3.Variable cost of sales consists of 40% materials, 40% direct labor, and 20% variable overhead.
4.All materials are purchased on credit and 60% are paid for in the quarter of purchase and the remaining amount is paid for in the quarter after purchase. There is no beginning or ending inventory.
5.Direct labor and variable overhead are paid in the quarter the expenses are incurred.
6.Fixed production costs include $3,000 of depreciation. Fixed production costs are paid in the quarter they are incurred.
7.Fixed selling and administrative costs, other than $4,000 of depreciation expense, are expected to increase by 2% per quarter. Fixed selling and administrative costs are paid in the quarter they are incurred.
8.The tax rate is expected to be 40%. All taxes are paid in the quarter they are incurred.
How much is budgeted total assets at March 31, 2015?
A.$523,528
B.$658,000
C.$350,000
D.None of these answer choices are correct.
157.E-Book Trading Company budgets $100,000 in fixed overhead and $11.00 per book in variable overhead. For May, E-Book expected to license and sell 14,000 e-books but because of unexpected demand actually sold 16,000 units. The actual overhead cost was $256,000. What will a flexible budget performance report for May likely indicate?
A.E-Book Trading had a $2,000 unfavorable variance for overhead for the month
B.E-Book Trading had a $20,000 favorable variance for overhead for the month
C.E-Book Trading had a $20,000 unfavorable variance for overhead for the month
D.E-Book Trading had a $2,000 favorable variance for overhead for the month
158.Prodigy Products’ expected manufacturing costs for trash cans for the month when 3,000 cans are produced are summarized below:
Direct material$2.40 per unit
Direct labor$1.60 per unit
Variable overhead$ 6,000
Factory depreciation10,500
Supervisory salaries4,800
Other fixed factory costs1,500
What is the flexible budget amount for a month when 3,200 units are produced?
A.$36,000
B.$37,120
C.$34,800
D.$35,600
159.Prodigy Products’ expected manufacturing costs for trash cans for the month when 3,000 cans are produced are summarized below:
Direct material$2.40 per unit
Direct labor$1.60 per unit
Variable overhead$ 6,000
Factory depreciation10,500
Supervisory salaries4,800
Other fixed factory costs1,500
What is the flexible budget amount for a month when 4,000 units are produced?
A.$34,800
B.$38,800
C.$46,400
D.$40,800
160.Prodigy Products’ expected manufacturing costs for trash cans for the month when 3,000 cans are produced are summarized below:
Direct material$2.40 per unit
Direct labor$1.60 per unit
Variable overhead$ 6,000
Factory depreciation10,500
Supervisory salaries4,800
Other fixed factory costs1,500
Which of the following is the flexible budget equation for Prodigy Products?
A.$4.00 × number of units produced
B.$16,800 + ($6.00 × number of units produced)
C.$11.60 × number of units produced
D.$22,800 + ($4.00 × number of units produced)
161.Belk Shoes planned to make 8,000 pairs of shoes using $40,000 on leather during February. Due to higher than anticipated demand for shoes, Belk produced 9,000 pairs of shoes and spent $44,500 on leather. Leather prices during the period were as expected in the budget. Which of the following statements is a fair statement regarding Belk’s performance on leather use?
A.Belk’s flexible budget for comparative purposes for February is $45,000.
B.Belk used more leather per shoe than was allowed in the budget.
C.Belk paid more for each yard of leather than allowed in the budget.
D.Belk spent $500 more for leather than allowed under the flexible budget.
162.Xanine Company budgets $200,000 in fixed overhead and $6.00 per unit in variable overhead. For June, Xanine expected to produce 11,000 units but because of unexpected demand actually produced 13,000 units. The actual overhead cost was $280,000. A flexible budget performance report for May would indicate that
A.Xanine generated a $2,000 favorable overhead variance for the month.
B.Xanine was $12,000 under budget for overhead for the month.
C.Xanine was $2,000 over budget for overhead for the month.
D.Xanine generated a $12,000 unfavorable overhead variance for the month.
