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Costs & Budgets (202500-META-CPTG12114-EN)
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The actual information pertains to the third quarter. As part of its budgeting process, Bishan Indian Restaurant (BIR) had developed the following static budget for the third quarter on the expectation that it would serve 10,000 meals. BIR is in the process of preparing the flexible budget and understanding the results.
|
Actual Results
|
|
Flexible Budget
|
|
Static Budget
|
Sales volume (in
units)
|
11,000
|
|
|
|
10,000
|
Sales revenues
|
$238,000
|
|
$
|
|
$230,000
|
Variable costs
|
$150,000
|
|
$
|
|
$180,000
|
Contribution margin
|
$88,000
|
|
$
|
|
$50,000
|
Fixed costs
|
$36,000
|
|
$
|
|
$35,000
|
Operating profit
|
$ 52,000
|
|
$
|
|
$ 15,000
|
QUESTION2. The amount for fixed costs in the flexible budget will be:
Kampong Glam Corporation used the following data to evaluate its current operating system. The company sells items for $21 each and used a budgeted selling price of $21 per unit.
|
Actual
|
Budgeted
|
Units sold
|
180,000 units
|
185,000 units
|
Variable costs
|
$1,080,000
|
$1,295,000
|
Fixed costs
|
$ 800,000
|
$ 775,000
|
|
|
|
QUESTION10. What is the static‐budget variance of revenues?
Mark Papers employs 15 full‐time employees and 10 trainees. Direct and indirect costs are applied on a professional labor‐hour basis that includes both employee and trainee hours. Following is information for 2023:
|
Budget
|
Actual
|
Indirect costs
|
$200,000
|
$300,000
|
Annual salary of each employee
|
$100,000
|
$110,000
|
Annual salary of each trainee
|
$ 25,000
|
$ 30,000
|
Total professional labor‐hours
|
50,000 dlh
|
60,000 dlh
|
QUESTION37.What are the budgeted direct‐cost rate and the budgeted indirect‐cost rate, respectively, per professional labor‐hour?
The actual information pertains to the third quarter. As part of its budgeting process, Bishan Indian Restaurant (BIR) had developed the following static budget for the third quarter on the expectation that it would serve 10,000 meals. BIR is in the process of preparing the flexible budget and understanding the results.
|
Actual Results
|
|
Flexible Budget
|
|
Static Budget
|
Sales volume (in
units)
|
11,000
|
|
|
|
10,000
|
Sales revenues
|
$238,000
|
|
$
|
|
$230,000
|
Variable costs
|
$150,000
|
|
$
|
|
$180,000
|
Contribution margin
|
$88,000
|
|
$
|
|
$50,000
|
Fixed costs
|
$36,000
|
|
$
|
|
$35,000
|
Operating profit
|
$ 52,000
|
|
$
|
|
$ 15,000
|
QUESTION3. The flexible‐budget variance for variable costs is
The following information pertains to Woodburn Company:
Month
|
Sales
|
Purchases
|
January
|
$60,000
|
$32,000
|
February
|
$80,000
|
$40,000
|
March
|
$100,000
|
$56,000
|
∙ Cash is collected from customers in the following pattern: Month of sale 30%
Month following the sale 70%
∙ 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
∙ Labor costs are 20% of sales. Other operating costs are $30,000 per month (including $8,000 of depreciation). Both of these payments are made in the month incurred.
∙ The cash balance on March 1 is $8,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.
QUESTION32. How much cash will be paid to suppliers in March?
QUESTION23. Amongst other data, which of the following is required to arrive at the budgeted units to be produced in a year?
QUESTION59. Which of the following is a direct manufacturing cost?
QUESTION54. Casino Manufacturing Corp. provided the following information for last month:
Sales
|
$40,000
|
Variable costs
|
14,000
|
Fixed costs
|
10,000
|
Operating income
|
$16,000
|
If sales reduce to half of the amount in the next month, what is the projected operating income?
QUESTION62. Which of the following differentiates job costing from process costing?
The following information pertains to the January operating budget for Canniba Corporation, a retailer:
Budgeted sales are $200,000 for January
Collections of sales are 50% in the month of sale and 50% the next month Cost of goods sold averages 70% of sales
Merchandise purchases total $150,000 in January Marketing costs are $3,000 each month Distribution costs are $5,000 each month Administrative costs are $10,000 each month
QUESTION27. For January, the amount budgeted for the nonmanufacturing costs budget is: