131. The A Company prepares a cash budget for the year 20x2. The balance in trades receivable on 1/1/20x2 is $460,000. The budgeted sales for the year 20x2 is $5,400,000, evenly estimated each month of the year. Sales at A company are normally collected as follows: 20% in the month of sale; 80% in the month following the sale. Total cash receipts in the year 20x2 are expected to be:
a. $5,890,000
b. $5,410,000
c. $5,500,000
d. $5,040,000
(5400000 - 450000 x 80% + 460000)
132. Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit. During 2014, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
What is Croissant's fixed overhead volume variance for 2014?
a. $36,000 (U)
b. $60,000 (U)
c. $24,000 (F)
d. $60,000 (F)
133. The K operates a standard costing system at 200,000 units of budgeted output. The budgeted fixed manufacturing overhead of $1,000,000 was $300,000 lower than the actual cost. Total fixed manufacturing overhead variance was $100,000 unfavorable.
The actual level of production was:
a. 270,000 units
b. 280,000 units
c. 240,000 units
d. 180,000 units
134. If the operating asset turnover increased by 50 percent and the margin increased by 50 percent, the ROI would increase by
a. 100 percent
b. 50 percent
c. 25 percent
d. 125 percent
135. A mobile producer has implemented a TQM system to ensure high quality and consistency across all outlets. As part of the scheme, the producer offers a free replacement to any customer not completely satisfied with their purchase. Which of the following best describes the cost of providing replacement mobiles?
a. An appraisal cost
b. An internal failure cost
c. An external failure cost
d. A prevention cost
136. Which of the following is the advantage of just-in-time control system?
a. There is a reduced reliance on suppliers
b. The quality of production improves
c. It is easier to switch suppliers
d. Labour becomes less important
137. Budgeting means to set standards, receive feedback, and executing corrective action.
a. True
b. False
138. The budget director is responsible for directing and coordinating the budgeting process.
a. True
b. False
139. The master budget is composed of the operations budget and the future budget.
a. True
b. False
140. A continuous budget is a moving twelve-month budget.
a. True
b. False
a. $5,890,000
b. $5,410,000
c. $5,500,000
d. $5,040,000
(5400000 - 450000 x 80% + 460000)
132. Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit. During 2014, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
What is Croissant's fixed overhead volume variance for 2014?
a. $36,000 (U)
b. $60,000 (U)
c. $24,000 (F)
d. $60,000 (F)
133. The K operates a standard costing system at 200,000 units of budgeted output. The budgeted fixed manufacturing overhead of $1,000,000 was $300,000 lower than the actual cost. Total fixed manufacturing overhead variance was $100,000 unfavorable.
The actual level of production was:
a. 270,000 units
b. 280,000 units
c. 240,000 units
d. 180,000 units
134. If the operating asset turnover increased by 50 percent and the margin increased by 50 percent, the ROI would increase by
a. 100 percent
b. 50 percent
c. 25 percent
d. 125 percent
135. A mobile producer has implemented a TQM system to ensure high quality and consistency across all outlets. As part of the scheme, the producer offers a free replacement to any customer not completely satisfied with their purchase. Which of the following best describes the cost of providing replacement mobiles?
a. An appraisal cost
b. An internal failure cost
c. An external failure cost
d. A prevention cost
136. Which of the following is the advantage of just-in-time control system?
a. There is a reduced reliance on suppliers
b. The quality of production improves
c. It is easier to switch suppliers
d. Labour becomes less important
137. Budgeting means to set standards, receive feedback, and executing corrective action.
a. True
b. False
138. The budget director is responsible for directing and coordinating the budgeting process.
a. True
b. False
139. The master budget is composed of the operations budget and the future budget.
a. True
b. False
140. A continuous budget is a moving twelve-month budget.
a. True
b. False
