271. The budget most appropriate for control purposes is the
a. static budget
b. flexible budget
c. continuous budget
d. incremental budget
272. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the budgeted costs for materials if 5,000 units were produced?
a. $9,000
b. $4,000
c. $50,000
d. $35,000
5,000 × $7 = $35,000
273. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the budgeted costs for rent if 5,000 units were produced?
a. $2,000
b. $100,000
c. $9,000
d. $45,000
$2,000 is given
274. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the total budgeted costs for 5,000 units?
a. $9,000
b. $92,750
c. $101,750
d. $110,000
($18.55 × 5,000) + $9,000 = $101,750
275. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?
a. $-0-
b. $18,550
c. $1,000
d. $9,000
1,000 × $18.55 = $18,550
276. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the total budgeted costs for 3,000 units?
a. $3,000
b. $55,650
c. $64,650
d. $27,000
($18.55 × 3,000) + $9,000 = $64,650
277. If the static budget variance for materials is $250 F and the budgeted cost for materials is $52,000, then the actual cost of materials is
a. $51,950
b. $52,150
c. $51,150
d. $51,750
Budget $52,000
Variance 250 F
Actual $51,750
278. The static budget variance for materials is $250 F and the budgeted cost for materials is $52,000. If the budgeted volume is 13,000 and the actual volume is 13,500, then the flexible budget variance is
a. $2,250 F
b. $3,050 F
c. $2,050 F
d. $1,850 F
Budget $52,000
Variance 250 F
Actual $51,750
Flexible budget ($52,000/13,000) × 13,500 54,000
Variance $ 2,250 F
279. A budget that is developed around one particular level of activity is
a. a static budget
b. a continuous budget
c. an incremental budget
d. none of these
280. If production was budgeted at 400 units and the actual production was 420 units, what would be the static budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
a. $50 F
b. $200 U
c. $100 F
d. $150 U
Actual $4,150
Budget (400 × $10) 4,000
Variance $ 150 U
a. static budget
b. flexible budget
c. continuous budget
d. incremental budget
272. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the budgeted costs for materials if 5,000 units were produced?
a. $9,000
b. $4,000
c. $50,000
d. $35,000
5,000 × $7 = $35,000
273. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the budgeted costs for rent if 5,000 units were produced?
a. $2,000
b. $100,000
c. $9,000
d. $45,000
$2,000 is given
274. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the total budgeted costs for 5,000 units?
a. $9,000
b. $92,750
c. $101,750
d. $110,000
($18.55 × 5,000) + $9,000 = $101,750
275. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?
a. $-0-
b. $18,550
c. $1,000
d. $9,000
1,000 × $18.55 = $18,550
276. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels.
Laramie had the following budgeted data: Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2016:
Supervision $4,000
Depreciation 3,000
Rent 2,000
What are the total budgeted costs for 3,000 units?
a. $3,000
b. $55,650
c. $64,650
d. $27,000
($18.55 × 3,000) + $9,000 = $64,650
277. If the static budget variance for materials is $250 F and the budgeted cost for materials is $52,000, then the actual cost of materials is
a. $51,950
b. $52,150
c. $51,150
d. $51,750
Budget $52,000
Variance 250 F
Actual $51,750
278. The static budget variance for materials is $250 F and the budgeted cost for materials is $52,000. If the budgeted volume is 13,000 and the actual volume is 13,500, then the flexible budget variance is
a. $2,250 F
b. $3,050 F
c. $2,050 F
d. $1,850 F
Budget $52,000
Variance 250 F
Actual $51,750
Flexible budget ($52,000/13,000) × 13,500 54,000
Variance $ 2,250 F
279. A budget that is developed around one particular level of activity is
a. a static budget
b. a continuous budget
c. an incremental budget
d. none of these
280. If production was budgeted at 400 units and the actual production was 420 units, what would be the static budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?
a. $50 F
b. $200 U
c. $100 F
d. $150 U
Actual $4,150
Budget (400 × $10) 4,000
Variance $ 150 U
