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ACC Final Part 2

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21List in order of preparation the items of the master budget

a. Budgeted balance sheet
b. Sales budget
c. Capital expenditures budget
d. Budgeted income statement
e. Cash budget
f. Inventory, purchases, and cost of goods sold budget
g. Budgeted statement of cash flows
22. Outdoorsies sells its rock-climbing shoes worldwide. Outdoorsies expects to sell 6,000 of shoes for 190 each in January, and 4,000 pairs of shoes for 220 each in February. All sales are cash only.

1. Prepare the sales budget for January and February

 23. Outdoorsies sells its rock-climbing shoes worldwide. Outdoorsies expects to sell 4,000 of shoes for 190 each in January, and 2,000 pairs of shoes for 215 each in February. All sales are cash only.
Grippers expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 4,200 pairs of shoes in March for $220 each. Grippers’ target ending inventory is $16,000 plus 40% of the nextmonth’s cost of goods sold. 
  
24. Banner Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $115 for each connector and fixed costs of 5,500 per month.
Banner's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 70 connectors at a total cost of $19,000.00

Banner's flexible budget variance for total costs is
  
25MajorNet Systems’ managers could set direct labor standards based on
a. time-and-motion studies. 
b. continuous improvement.
c. benchmarking.
d. past actual performance

26. MajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost of 17 per hour. During August, technicians actually worked 189 hours completing 84 connectors. All 84 connectors actually produced were sold. MajorNet paid the technicians 17.8 per hour.

What is MajorNet’s direct labor price variance for August?
  
27. MajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost of 17 per hour. During August, technicians actually worked 189 hours completing 84 connectors. All 84 connectors actually produced were sold. MajorNet paid the technicians 17.8 per hour.

What is MajorNet’s direct labor efficiency variance for August?
  
28The journal entry to record MajorNet’s use of direct labor in August is which of the following?

a. Manufacturing wages
            Direct labor efficiency variance
            Work in process inventory

b. Work in process inventory
            Direct labor efficiency variance
            Manufacturing wages

c. Work in process inventory
Direct labor efficiency variance
            Manufacturing wages

d. Manufacturing wages
Direct labor efficiency variance
            Work in process inventory

29. FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. According to the static budget, FrontGrade expected to incur the following:

1,100 machine hours per month (100 connectors  x 11 machine hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs

During August, FrontGrade actually used 1,000 machine hours to make 110 connectors
and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing overhead costs. FrontGrade’s predetermined standard variable manufacturing overhead rate is

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