Question 1

The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit.

Accepted Answer

A) True 
 B)False

Question 2

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Accepted Answer

A)  It details the required direct labor hours.
B)  It details the required raw materials purchases.
C)  It is calculated based on the sales budget and the desired ending inventory.
D)  It summarizes the costs of producing units for the budget period.E) All of the above
F) A) and C)

Question 3

If the company has budgeted to sell 14,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Accepted Answer

A)  $526,800
B)  $289,800
C)  $237,000
D)  $519,800E) None of the above
F) B) and C)

Question 4

The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Accepted Answer

A)  $68,800
B)  $64,960
C)  $14,720
D)  $50,240E) B) and C)
F) B) and D)

Question 5

The estimated direct labor cost for May is closest to:

Accepted Answer

A)  $558,000
B)  $33,480
C)  $837,000
D)  $279,000E) A) and C)
F) None of the above

Question 6

The estimated selling and administrative expense for May is closest to:

Accepted Answer

A)  $115,700
B)  $80,000
C)  $77,130
D)  $35,700E) All of the above
F) B) and D)

Question 7

The budgeted sales for February is closest to:

Accepted Answer

A)  $825,000
B)  $1,166,000
C)  $1,287,000
D)  $1,320,000E) B) and C)
F) A) and D)

Question 8

The selling and administrative budget is typically prepared before the cash budget.

Accepted Answer

A) True 
 B)False

Question 9

If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October?

Accepted Answer

A)  13,300 units
B)  14,100 units
C)  13,800 units
D)  13,600 unitsE) All of the above
F) A) and B)

Question 10

If the budgeted cost of raw materials purchases in February is $222,180, then the budgeted accounts payable balance at the end of February is closest to:

Accepted Answer

A)  $222,180
B)  $88,872
C)  $117,912
D)  $133,308E) B) and D)
F) B) and C)

Question 11

The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.The direct labor budget indicates that 4,400 direct labor-hours will be required in January.The variable overhead rate is $1.30 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160.All other fixed manufacturing overhead costs represent current cash flows.The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Accepted Answer

A)  $5,720
B)  $43,120
C)  $48,840
D)  $66,000E) A) and D)
F) C) and D)

Question 12

Reaser Corporation makes one product.   Each unit of finished goods requires 4 pounds of raw materials.The ending finished goods inventory equals 10% of the following month's sales.The ending raw materials inventory equals 40% of the following month's raw materials production needs.If 50,600 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Accepted Answer

A)   56,600 pounds
B)   42,056 pounds
C)   71,144 pounds
D)   36,360 poundsE) C) and D)
F) B) and D)

Question 13

If 54,480 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Accepted Answer

A)   74,376 pounds
B)   44,640 pounds
C)   47,592 pounds
D)   60,984 poundsE) A) and B)
F) A) and C)

Question 14

The budgeted required production for February is closest to:

Accepted Answer

A)   11,020 units
B)   14,200 units
C)   10,600 units
D)   17,380 unitsE) B) and C)
F) All of the above

Question 15

The number of units the company would have to manufacture during the year would be:

Accepted Answer

A)  300,000 units
B)  270,000 units
C)  260,000 units
D)  280,000 unitsE) None of the above
F) B) and C)

Question 16

All of Pocast Corporation's sales are on account.Sixty percent of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale.The following are budgeted sales data for the company:  Cash receipts in April are expected to be:

Accepted Answer

A)  $530,000
B)  $360,000
C)  $460,000
D)  $410,000E) B) and C)
F) A) and B)

Exam 8: Master Budgeting

The number of units the company would have to manufacture during the year would be:

Correct Answer
verified

If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October?

Correct Answer
verified

Correct Answer
verified

The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Correct Answer
verified

The estimated selling and administrative expense for May is closest to:

Correct Answer
verified

If 54,480 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Correct Answer
verified

If the budgeted cost of raw materials purchases in February is $222,180, then the budgeted accounts payable balance at the end of February is closest to:

Correct Answer
verified

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Correct Answer
verified

Correct Answer
verified

The estimated direct labor cost for May is closest to:

Correct Answer
verified

The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit.

Correct Answer
verified

All of Pocast Corporation's sales are on account.Sixty percent of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale.The following are budgeted sales data for the company: Cash receipts in April are expected to be:

Correct Answer
verified

The selling and administrative budget is typically prepared before the cash budget.

Correct Answer
verified

The budgeted sales for February is closest to:

Correct Answer
verified

If the company has budgeted to sell 14,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Correct Answer
verified

The budgeted required production for February is closest to:

Correct Answer
verified

Exam 8: Master Budgeting

The number of units the company would have to manufacture during the year would be:

Correct AnswerverifiedShow Answer

If the total budgeted selling and administrative expense for October is $518,520, then how many Yutes does the company plan to sell in October?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The October cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Correct AnswerverifiedShow Answer

The estimated selling and administrative expense for May is closest to:

Correct AnswerverifiedShow Answer

If 54,480 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Correct AnswerverifiedShow Answer

If the budgeted cost of raw materials purchases in February is $222,180, then the budgeted accounts payable balance at the end of February is closest to:

Correct AnswerverifiedShow Answer

There are various budgets within the master budget.One of these budgets is the production budget.Which of the following BEST describes the production budget?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The estimated direct labor cost for May is closest to:

Correct AnswerverifiedShow Answer

The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit.

Correct AnswerverifiedShow Answer

All of Pocast Corporation's sales are on account.Sixty percent of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale.The following are budgeted sales data for the company: Cash receipts in April are expected to be:

Correct AnswerverifiedShow Answer

The selling and administrative budget is typically prepared before the cash budget.

Correct AnswerverifiedShow Answer

The budgeted sales for February is closest to:

Correct AnswerverifiedShow Answer

If the company has budgeted to sell 14,000 Yutes in November, then the total budgeted selling and administrative expenses for November would be:

Correct AnswerverifiedShow Answer

The budgeted required production for February is closest to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified