Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
24 - 1 Budgetary Control and Responsibility Accounting 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.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 179 Valquez Manufacturing Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2014, the following data are developed: 1.Sales:  20,000 units; unit selling price:$35 2.Variable costs per dollar of sales: Sales commissions6% Delivery expense2% Advertising4% 3.Fixed costs per quarter: Sales salaries$24,000 Office salaries17,000 Depreciation5,000 Insurance1,000 Utilities2,000 Instructions Prepare a.
9 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 78.In the Mduntrik Company, indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 170,000 direct labor hours are worked, flexible budget total for these costs is a.$96,000. b.$100,500. c.$102,000. d.$88,000. 79.Shine Company uses flexible budgets. At.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 26 Cruises, Inc. has budgeted sales revenues as follows:    June     July   August Credit sales$135,000$125,000$  90,000 Cash sales    90,000  255,000  195,000 Total sales$225,000$380,000$285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases.
8 Views
View Answer
23 - 1 Budgetary Planning Additional WileyPLUS Brief Exercises and Exercises BE 1 The budget components for Birk Company for the quarter ended June 30 appear below. Birk sells trash cans for $12 each. Budgeted production for the next three months is: April26,000 units May46,000 units June29,000 units Birk desires to have trash cans on hand at the.
9 Views
View Answer
23 - 1 Budgetary Planning Ex. 35 In September 2013, the management of Rye Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November. 1.Expected Sales October$1,500,000 November2,100,000 December2,700,000 2.Cost of goods sold is expected to be 70% of sales. 3.Desired ending merchandise inventory is 20% of the next month's cost.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 22 The Northeast Regional Division of Union Corp. has been requested to prepare a quarterly budgeted income statement for 2013. The regional manager expects that sales in the first quarter of 2013 will increase by 10% over the same quarter of the preceding year and will then.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 31 Rudd Company has budgeted sales revenue as follows for the next 4 months: February$300,000 March240,000 April210,000 May330,000 Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale,.
9 Views
View Answer
23 - 1 Budgetary Planning Ex. 27 Clay Co.’s projected sales are as follows: August$400,000 September$450,000 October$550,000 Clay estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. Instructions How much.
14 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 128.An investment center generated a contribution margin of $300,000, fixed costs of $200,000 and sales of $2,000,000. The center’s average operating assets were $800,000. How much is the return on investment? a.15% b.33% c. 10% d.37.5% 129. Aldo Manufacturing recorded operating data for its auto accessories division for the.
6 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting MULTIPLE CHOICE QUESTIONS 38.What is budgetary control? a.Another name for a flexible budget b.The degree to which the CFO controls the budget c.The use of budgets in controlling operations d.The process of providing information on budget differences to lower level managers 39.A major element in budgetary control is a.the preparation of.
10 Views
View Answer
23 - 1 Budgetary Planning Ex. 191 Chez Company has budgeted sales revenue as follows for the next 4 months: February$240,000 March300,000 April210,000 May330,000 Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale,.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 17 For each item given, identify the budget in which it will appear. If an item will appear on more than one budget, then indicate as many budgets as are relevant. Budget Code: DMDirect Materials Budget DLDirect Labor Budget PProduction Budget SSales Budget CCash Budget BBSBudgeted Balance Sheet BISBudgeted Income Statement SASelling and Administrative Expense Budget MOHManufacturing.
12 Views
View Answer
23 - 1 Budgetary Planning Ex. 184 Vista, Inc. provided the following information:     July   August Projected sales$220,000$260,000 Projected merchandise purchases$150,000$180,000      Vista estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all.
10 Views
View Answer
23 - 1 Budgetary Planning Ex. 189 The management of Ventura Industries estimates that credit sales for August, September, October, and November will be $540,000, $750,000, $840,000, and $460,000, respectively. Experience has shown that collections are made as follows: In month of sale25% In first month after sale60% In second month after sale10% Instructions Determine the collections from.
9 Views
View Answer
23 - 1 Budgetary Planning Ex. 15 Tall Oak, Inc. produces rulers from plastic resin. Tall Oak has estimated production and sales of rulers in units for the next 2 months as: May June Estimated production42,00048,000 Estimated sales50,00036,000 Each ruler requires 0.25 pounds of resin. The cost of resin is $4.50 per pound. Tall Oak wants.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 187 O’Reiley Company’s projected sales are as follows: August$470,000 September$540,000 October$660,000 O’Reiley estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. Instructions How much.
9 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 138.Return on investment is calculated by dividing a.contribution margin by sales. b.controllable margin by sales. c.contribution margin by average operating assets. d.controllable margin by average operating assets. 139.Which one of the following will not increase return on investment? a.Variable costs are increased b.An increase in sales c.Average operating assets are decreased d.Variable costs.
7 Views
View Answer
23 - 1 Budgetary Planning Ex. 21 Walt Bach Company has accumulated the following budget data for the year 2013. 1.Sales: 40,000 units, unit selling price $50. 2.Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $12 per hour, and manufacturing overhead $6 per.
11 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 11.Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity. 12.Total budgeted fixed costs appearing on a flexible budget will be the same amount as total fixed costs on the master budget. 13.A flexible budget is prepared.
10 Views
View Answer
23 - 1 Budgetary Planning Ex. 11 Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product 2013Regular Deluxe  Total July10,00015,00025,000 August6,00010,00016,000 September9,00014,00023,000 October8,00012,00020,000 It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 195 In September 2014, the management of Gilian Company assembles the following data in preparation of budgeted merchandise purchases for the months of October and November. 1.Expected Sales October$1,500,000 November2,100,000 December2,300,000 2.Cost of goods sold is expected to be 68% of sales. 3.Desired ending merchandise inventory is 25% of the next month's cost.
9 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 58.Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets? a.Direct materials cost b.Direct labor cost c.Variable manufacturing overhead d.Fixed manufacturing overhead 59.In developing a flexible budget within.
14 Views
View Answer
23 - 1 Budgetary Planning Ex. 23 In September 2013, the budget committee of Jason Company assembles the following data: 1.Expected Sales October$1,800,000 November1,700,000 December1,600,000 2.Cost of goods sold is expected to be 60% of sales. 3.Desired ending merchandise inventory is 20% of the next month's cost of goods sold. 4.The beginning inventory at October 1 will be the desired.
8 Views
View Answer
23 - 1 Budgetary Planning MATCHING 208.Match the items below by entering the appropriate code letter in the space provided. A.Budget              F.              Production budget B.Financial budgets              G.              Cash budget C.Budget committee              H.              Long-range planning D.Master budget              I.              Direct materials budget E.Sales forecast              J.              Sales budget ____1.A selection of strategies to achieve long-term goals. ____2.An estimate of expected sales for the.
11 Views
View Answer
23 - 1 Budgetary Planning S-A E  213(Ethics) Derek Fuller is a new production manager. After a great deal of effort, including considerable market research, he completes his budget and submits it to his boss, Alexandra Bricker. Without even looking at it, she asks him what his "fudge factor" was, and which items.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 186 Redding Company has budgeted sales revenues as follows:    June     July   August Credit sales$135,000$145,000$  90,000 Cash sales    90,000  255,000  195,000 Total sales$225,000$400,000$285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases.
14 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 108.Of the following choices, which contain both a traceable fixed cost and a common fixed cost? a.Profit center manager's salary and timekeeping costs for a responsibility center's employees b.Company president's salary and company personnel department costs c.Company personnel department costs and timekeeping costs for a responsibility center's.
7 Views
View Answer
23 - 1 Budgetary Planning Ex. 33 Minor Landscaping Company is preparing its budget for the first quarter of 2013. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their.
9 Views
View Answer
23 - 1 Budgetary Planning Ex. 193 Lime Landscaping Inc. is preparing its budget for the first quarter of 2014. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their.
10 Views
View Answer
23 - 1 Budgetary Planning Ex. 29 The management of Ocean Industries estimates that credit sales for August, September, October, and November will be $540,000, $750,000, $840,000, and $480,000, respectively. Experience has shown that collections are made as follows: In month of sale25% In first month after sale60% In second month after sale10% Instructions Determine the collections from.
15 Views
View Answer
23 - 1 Budgetary Planning Ex. 19 Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2013, the following data are developed: 1.Sales:  20,000 units; unit selling price:$30 2.Variable costs per dollar of sales: Sales commissions6% Delivery expense2% Advertising4% 3.Fixed costs per quarter: Sales salaries$24,000 Office salaries19,000 Depreciation6,000 Insurance2,000 Utilities1,000 Instructions Prepare a selling.
21 Views
View Answer
23 - 1 Budgetary Planning Ex. 12 Garver Industries has budgeted the following unit sales:    2013  Units January10,000 February8,000 March9,000 April11,000 May15,000 The finished goods units on hand on December 31, 2012, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 183 In September 2014, the budget committee of Cole Company assembles the following data: 1.Expected Sales October$1,800,000 November1,700,000 December1,600,000 2.Cost of goods sold is expected to be 60% of sales. 3.Desired ending merchandise inventory is 25% of the next month's cost of goods sold. 4.The beginning inventory at October 1 will be the desired.
11 Views
View Answer
23 - 1 Budgetary Planning Ex. 14 The following facts are known:          The total pounds needed for production are 2 times the units to be produced.          The desired ending direct materials inventory is 20% of the total pounds needed for production.          The beginning direct materials inventory is equal in number to 10% of.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 24 Burr, Inc. provided the following information:     July   August Projected sales$220,000$260,000 Projected merchandise purchases$150,000$180,000      Burr estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all.
11 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 31.Budget reports provide the feedback needed by management to see whether actual operations are on course. 32.A static budget is an effective means to evaluate a manager's ability to control costs, regardless of the actual activity level. 33.The flexible budget report evaluates a manager's performance in.
10 Views
View Answer
23 - 1 Budgetary Planning SHORT-ANSWER ESSAY QUESTIONS S-A E  209 (a)What is a budget? (b)How does a budget contribute to good management? S-A E  210 Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people, identify several negative aspects if budgets are not.
7 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 118.A responsibility report for a profit center will a.not show controllable fixed costs. b.not show indirect fixed costs. c.show noncontrollable fixed costs. d.not show cumulative year-to-date results. 119.The dollar amount of the controllable margin a.is usually higher than the contribution margin. b.is usually lower than the contribution margin. c.is always equal to.
7 Views
View Answer
23 - 1 Budgetary Planning BE 5 Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during.
8 Views
View Answer
23 - 1 Budgetary Planning Ex. 182 The Southeast Regional Division of Payne Wholesale Corporation has been requested to prepare a quarterly budgeted income statement for 2015. The regional manager expects that sales in the first quarter of 2015 will increase by 10% over the same quarter of the preceding year and will.
8 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 21.Cost centers, profit centers, and investment centers can all be classified as responsibility centers. 22.More costs become controllable as one moves down to each lower level of managerial responsibility. 23.In a responsibility accounting reporting system, as one moves up each level of responsibility in an organization,.
10 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 98.Management by exception a.is most effective at top levels of management. b.can be implemented at each level of responsibility within an organization. c.can only be applied when comparing actual results with the master budget. d.is the opposite of goal congruence. 99.Which responsibility centers generate both revenues and costs? a.Investment and.
10 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 88.At 18,000 direct labor hours, the flexible budget for indirect materials is $36,000. If $37,600 are incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for indirect materials: a.$1,600 unfavorable. b.$1,600 favorable. c.$800 favorable. d.$800 unfavorable. 89.The accumulation of accounting data on the.
13 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting TRUE-FALSE STATEMENTS 1.Budget reports comparing actual results with planned objectives should be prepared only once a year. 2.If actual results are different from planned results, the difference must always be investigated by management to achieve effective budgetary control. 3.Certain budget reports are prepared monthly, whereas others are.
24 Views
View Answer
23 - 1 Budgetary Planning Ex. 181 Zen Company has accumulated the following budget data for the year 2014. 1.Sales: 60,000 units, unit selling price $50. 2.Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $10 per hour, and manufacturing overhead $6 per direct.
10 Views
View Answer
23 - 1 Budgetary Planning Ex. 13 Benet Company has budgeted the following unit sales:        2013                 2013          Quarter  UnitsQuarter  Units 1105,000190,000 260,000 375,000 4120,000 The finished goods inventory on hand on December 31, 2012 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's.
10 Views
View Answer
23 - 1 Budgetary Planning EXERCISES Ex. 9 Delta Manufacturing has budgeted the following unit sales: 2012  Units April25,000 May40,000 June60,000 July45,000 Of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit. Instructions Prepare separate sales.
11 Views
View Answer
24 - 1 Budgetary Control and Responsibility Accounting 48.When budgeted and actual results are not the same amount, there is a budget a.error. b.difference. c.anomaly. d.by-product. 49.Top management's reaction to a difference between budgeted and actual sales often depends on a.whether the difference is favorable or unfavorable. b.whether management anticipated the difference. c.the materiality of the difference. d.the personality of the.
9 Views
View Answer
23 - 1 Budgetary Planning COMPLETION STATEMENTS 196.A _________________ is a formal written statement of management's plans expressed in financial terms. 197.A budget is a primary means of ________________ agreed upon objectives throughout the business organization. 198.Effective budgeting is dependent on an _________________________ in which authority and responsibility are clearly defined. 199.The budget should have the.
12 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*