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Exam 8: Master Budgeting

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Question 81

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Haylock Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The direct labor budget indicates that 5,600 direct labor-hours will be required in August.The variable overhead rate is $5.40 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $69,440 per month,which includes depreciation of $15,680.All other fixed manufacturing overhead costs represent current cash flows.The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

A) $99,680
B) $84,000
C) $53,760
D) $30,240

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Question 82

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The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred. -If the company has budgeted to sell 16,000 Debs in January,then the total budgeted variable selling and administrative expenses for January will be:

A) $17,600
B) $25,600
C) $40,000
D) $36,800

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Question 83

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Vinall Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected: 30% in the month of the sale 70% in the following month Raw materials purchases are paid: 20% in the month of purchase 80% in the following month The ending finished goods inventory should equal 20% of the following month's sales.The ending raw materials inventory should equal 20% of the following month's raw materials production needs. Required: a.What are the budgeted sales for August? b.What are the expected cash collections for August? c.According to the production budget,how many units should be produced in August? d.If 20,960 pounds of raw materials are needed for production in September,how many pounds of raw materials should be purchased in August? e.What is the estimated cost of raw materials purchases for August? f.If the cost of raw material purchases in July is $40,688,then in August what are the total estimated cash disbursements for raw materials purchases? g.What is the total estimated direct labor cost for August assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

Depasquale Corporation is working on its direct labor budget for the next two months.Each unit of output requires 0.41 direct labor-hours.The direct labor rate is $8.10 per direct labor-hour.The production budget calls for producing 5,000 units in May and 5,400 units in June.If the direct labor work force is fully adjusted to the total direct labor-hours needed each month,what would be the total combined direct labor cost for the two months?

The BRS Corporation makes collections on sales according to the following schedule: The following sales have been budgeted: Budgeted cash collections in June would be:

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. -The estimated net operating income (loss) for February is closest to:

Varughese Inc. is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000. -The budgeted cash receipts for December are:

Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b. Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 30% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g. Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. -The budgeted accounts receivable balance at the end of February is closest to:

Michard Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit. b. Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month. c. The ending finished goods inventory equals 20% of the following month's sales. d. The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound. e. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% in the following month. f. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours. g. The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000. -The expected cash collections for May is closest to:

Bux Corporation produces and sells one product.In November it expects to sell 10,600 units of this product.The company's variable selling and administrative expense is $3.70 per unit sold and its fixed selling and administrative expense is $50,000 per month.The estimated selling and administrative expense for November is closest to:

-Wala Inc.bases its selling and administrative expense budget on the number of units sold.The variable selling and administrative expense is $8.20 per unit.The budgeted fixed selling and administrative expense is $132,800 per month,which includes depreciation of $14,400.The remainder of the fixed selling and administrative expense represents current cash flows.The sales budget shows 8,000 units are planned to be sold in July. Required: Prepare the selling and administrative expense budget for July.

The LaGrange Corporation had the following budgeted sales for the first half of the current year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. -What is the budgeted accounts receivable balance on May 30?

Varughese Inc. is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000. -To attain its desired ending cash balance for March,the company needs to borrow:

Schuepfer Inc.bases its selling and administrative expense budget on budgeted unit sales.The sales budget shows 1,300 units are planned to be sold in March.The variable selling and administrative expense is $4.20 per unit.The budgeted fixed selling and administrative expense is $19,240 per month,which includes depreciation of $3,380 per month.The remainder of the fixed selling and administrative expense represents current cash flows.The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase. -In June the company has budgeted to produce 22,000 Pods.Budgeted direct labor costs incurred in June would be:

Craney Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: > The budgeted selling price per unit is $87.Budgeted unit sales for January,February,March,and April are 7,100,8,300,13,700,and 13,600 units,respectively.All sales are on credit. > Regarding credit sales,20% are collected in the month of the sale and 80% in the following month. > The ending finished goods inventory equals 40% of the following month's sales. > The ending raw materials inventory equals 40% of the following month's raw materials production needs.Each unit of finished goods requires 5 pounds of raw materials.The raw materials cost $1.00 per pound. > Regarding raw materials purchases,30% are paid for in the month of purchase and 70% in the following month. > The direct labor wage rate is $19.00 per hour.Each unit of finished goods requires 2.7 direct labor-hours. Required: a.What are the budgeted sales for February? b.What are the expected cash collections for February? c.According to the production budget,how many units should be produced in February? d.If 68,300 pounds of raw materials are needed for production in March,how many pounds of raw materials should be purchased in February? e.What is the estimated cost of raw materials purchases for February? f.If the cost of raw material purchases in January is $43,660,then in February what are the estimated cash disbursements for raw materials purchases? g.What is the total estimated direct labor cost for February assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?

Knappert Corporation makes one product and has provided the following information: A.Each unit of finished goods requires 3 pounds of raw materials.The raw materials cost $5.00 per pound. B.The direct labor wage rate is $24.00 per hour.Each unit of finished goods requires 2.8 direct labor-hours. C.Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour. D.The variable selling and administrative expense per unit sold is $3.80.The fixed selling and administrative expense per month is $50,000. The unit product cost is closest to:

Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. -If 41,920 pounds of raw materials are required for production in September,then the budgeted raw material purchases for August is closest to:

Varughese Inc. is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000. -The excess (deficiency) of cash available over disbursements for March will be:

Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected: 40% in the month of the sale 60% in the following month Raw materials purchases are paid: 30% in the month of purchase 70% in the following month The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs. -The estimated selling and administrative expense for August is closest to: