Budgeting
This budget must be prepared first
What is the sales budget
The difference between the flexible budget and the actual results is called
What is revenue/spending variance or flexible budget variance
The difference between the planning budget and the actual results is called
What is static budget variance
A company reports the following budgeted sales: August, $300,000; and September $340,000. Cash sales are 40% of total sales, and all credit sales are collected in the month following the sale. Total cash receipts for September are:
What is $316,000
The process of planning future business actions and expressing them as formal plans is called
What is budgeting
A plan that shows budgeted cash receipts and cash payments during the budget period is called a
What is the cash budget
The difference between the flexible budget and the static planning budget is called
What is activity or volume variance
When the actual quantity of direct labor hours used is less than the standard quantity of direct labor hours, the company has an unfavorable or favorable direct labor quantity variance?
What is favorable
Cameroon Corporation manufactures and sells electric staplers for $15.50 each. If 10,000 units were sold in December, and management forecasts 3.5% growth in sales each month, the number of units of electric stapler sales budgeted for January should be
What is 10,350
The difference between actual price per unit of input and the standard price per unit of input results in a
What is a price variance
This budget must be prepared after the sales budget but before the direct materials and direct labor budgets
What is the production budget
This report is prepared to analyze the differences between the static planning budget and the actual results
What is a flexible budget performance report
When the actual price per unit of direct materials used exceeds the standard price per unit, the company has an unfavorable or favorable direct materials price variance?
What is unfavorable
Solar Company budgets production of 10,000 solar panels in July. If each unit requires 8 hours of direct labor at a rate of $32 per hour, then the cost of direct labor equals
What is $2,560,000
The difference between actual quantity of input used and the standard quantity of input used results in a
What is a quantity variance
A company budgets sales of 360 units in May and 400 units in June. If each month’s ending inventory of finished units should be 60% of the next month’s sales, the desired ending inventory for May
What is 240 units
A manager analyzes a flexible budget performance report to determine what causes variances. This is called
What is variance analysis
This overhead variance occurs when a company operates at a different capacity level than was predicted.
What is the volume variance
Alliance Company budgets production of 22,000 units in January and 26,000 units in February. Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound. Each month's ending raw materials inventory should equal 40% of the following month's budgeted materials. The January 1 inventory for this material is 26,400 pounds. What is the budgeted materials needed in pounds for January?
What is 70,800 pounds
Preset costs for delivering a product or service under normal conditions
What are standard costs
Morris Company reports the following budgeted credit sales: September, $110,000; October, $132,000; and November, $160,000. If the company collects 60% of credit sales in the first month after the sale and 35% in the second month after the sale, Morris Company will have cash receipts in November of
What is $117,700
The flexible variance can be broken down further into variances for direct materials, direct labor, and variable overhead. The two variances for these are
What are price variance and quantity variance
The total direct materials variance if the price variance is $5,600 F and the quantity variance is $11,250 U
What is $5,650 U
Cameroon Corporation manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be
What is $173,056
This budget is prepared using standard costs and actual sales
What is a flexible budget.