Final

Question 1

Material/labour price variance

Answer 1

Actual - flexible

Question 2

Total material/labour variance

Answer 2

Actual - static

Question 3

Material/labour quantity variance

Answer 3

Flexible - static

Question 4

Actual schedule

Answer 4

Actual quantity * actual price

Question 5

Flexible schedule

Answer 5

Actual quantity * standard price

Question 6

Static schedule

Answer 6

Standard quantity * standard price

Question 7

Flexible budget

Answer 7

Activity level

Variable cost
DM
DL
MOH
total variable costs
+
Fixed costs
Depreciation
Supervision
Total fixed costs

Total costs

Question 8

Flexible budget w/ Actual

Answer 8

Budgeted Actual Difference U/F
Activity level

Variable cost
DM
DL
MOH
total variable costs
+
Fixed costs
Depreciation
Supervision
Total fixed costs

Total costs

Question 9

Responsibility Report - Ch 11

Answer 9

Company name
Assembly department
MOH report
Month ended
Budget. Actual. Variance. U/F
Controllable costs
Indirect materials
Indirect labour
Utilities
Supervision
Total MOH

Question 10

What two types of budgets are there?

Answer 10

1) Operational Budgets
2) Financial budgets

Question 11

Operational Budgets

Answer 11

Sales
Production: DM DL MOH
Selling & Admin expense
Budgeted income statement

Question 12

Financial Budgets

Answer 12

Cash Budget

Question 13

Sales budget

Answer 13

Budgeted sales in unit * budgeted selling price per unit = budgeted revenue

Question 14

Production budget

Answer 14

budgeted sales in units
+ desired ending finished goods inventory
———————
Total units required
- beginning finished goods inventory
———————
Required production in units

Question 15

DM budget

Answer 15

Required production in units
* DM required per unit (in kilograms)
———————
Total DM required (in kilograms)
+ Desired ending DM inventory
———————
Total DM needed
- beginning DM inventory
———————
Required DM purchases (in kilograms)
* budgeted DM cost (per kilogram)
———————
Budget cost of DM ($)

Question 16

DL Budget:

Answer 16

Required production in units
* DL required per unit (hours)
———————
Total DL Hours required
* Budget cost per DL hour
———————
Budgeted cost of DL ($)

Question 17

MOH budget:

Answer 17

Total DL hours required
* budgeted variable overhead per DL hour
———————
Total budgeted variable overhead
+ beginning fixed overhead
———————
Total budgeted overhead ($)

Question 18

Selling and admin budget

Answer 18

Budgeted sales in units
* selling price
———————
Budgeted revenues
+ variable selling expense
+fixed selling and admin expense
———————
Total selling and admin expenses

Question 19

Computation of cost goods sold:

Answer 19

DM
DL
MOH
————
Cost of unit of finished goods
———————
———————-
* # of units sold
————————
COGS

Question 20

Budgeted income statement:

Answer 20

Sales:
Less:COGS
——————
Gross profit
Less: selling admin expenses
——————-
Income before income tax
Less: tax
——————
Net income

Question 21

Cash budget:

Answer 21

Beginning cash balance
—————
Add: cash receipts (itemized)
Total receipts:
—————-
Total available cash
——————
Less: cash disbursements (itemized)
Dm
DL
MOH
Selling and admin exp
Total disbursements:
———————
Excess (deficiency) of available cash over cash disbursements:
——————-
Financing
Borrowing
Repayment
Total financing:
———————
Ending cash balance: