Question :
68. Management by exception
a.causes managers to be buried under voluminous : 1311866
68. Management by exception
a.causes managers to be buried under voluminous paperwork.
b.means that all differences will be investigated.
c.means that only unfavorable differences will be investigated.
d.means that material differences will be investigated.
69. Under management by exception, which differences between planned and actual results should be investigated?
a.Material and noncontrollable
b.Controllable and noncontrollable
c.Material and controllable
d.All differences should be investigated
70. Best Shingle’s budgeted manufacturing costs for 50,000 squares of shingles are:
Fixed manufacturing costs$12,000
Variable manufacturing costs$16.00 per square
Best produced 40,000 squares of shingles during March. How much are budgeted total manufacturing costs in March?
a.$640,000
b.$812,000
c.$800,000
d.$652,000
71. A flexible budget depicted graphically
a.is identical to a CVP graph.
b.differs from a CVP graph in the way that fixed costs are shown.
c.differs from a CVP graph in the way that variable costs are shown.
d.differs from a CVP graph in that sales revenue is not shown.
72. The activity index used in preparing the flexible budget
a.is prescribed by generally accepted accounting principles.
b.is only applicable to fixed manufacturing costs.
c.is the same for all departments.
d.should significantly influence the costs that are being budgeted.
73. A static budget is not appropriate in evaluating a manager’s effectiveness if a company has
a.substantial fixed costs.
b.substantial variable costs.
c.planned activity levels that match actual activity levels.
d.no variable costs.
74. Shane Industries prepared a fixed budget of 60,000 direct labor hours, with estimated overhead costs of $300,000 for variable overhead and $90,000 for fixed overhead. Shane then prepared a flexible budget at 57,000 labor hours. How much is total overhead costs at this level of activity?
a.$285,000
b.$375,000
c.$370,500
d. $390,000
75. For June, Gold Corp. estimated sales revenue at $600,000. It pays sales commissions that are 4% of sales. The sales manager’s salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. How much are budgeted selling expenses for the month of July if sales are expected to be $540,000?
a.$42,000
b.$327,000
c. $27,000
d.$330,000
76.Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:
Fixed manufacturing costs $50,000 per month
Variable manufacturing costs $12.00 per ton of steel
Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?
a.$520,000
b. $650,000
c. $480,000
d. $530,000
77. Smart Manufacturing budgeted costs for 50,000 linear feet of block are:
Fixed manufacturing costs $24,000 per month
Variable manufacturing costs $16.00 per linear foot
Smart installed 40,000 linear feet of block during March. How much is budgeted total manufacturing costs in March?
a.$640,000
b. $824,000
c. $800,000
d. $664,000