An organization's budgets will often be prepared to cover:

one month.
one quarter.
one year.
periods longer than one year.
All of these.
Darling Company, which applies overhead to production on the basis of machine hours, reported the
following data for the period ust ended:Actual units produced: !",###Actual variable overhead
incurred: $%&#,###Actual machine hours wor'ed: (#,###)udgeted fi*ed overhead $%",###+lanned
level of machine,hour activity -#,###.f Darling estimates four hours to manufacture a completed unit,
the company's standard fi*ed overhead rate per machine hour would be:
$!".##.
$!/./#.
$!/.(#.
$!-.##.
some other amount.
0tandard fi*ed overhead rate per machine hour 1 )udgeted fi*ed overhead2+lanned level of machine
hour activity
1 $%"#,###2-#,### machine hours
1 $!/./# per machine hour
3rois 4lles Corporation recently prepared a manufacturing cost budget for an output of -#,### units,
as follows:Direct materials $!##,###Direct labor -#,###5ariable overhead %-,###6i*ed overhead
!##,###Actual costs incurred were: direct materials, $!!#,###7 direct labor, $(#,###7 variable
overhead, $!##,###7 and fi*ed overhead, $8%,###. .f 3rois 4lles evaluated performance by the use of
a fle*ible budget, a performance report would reveal a total variance of:
$&,### favorable.
$"&,### favorable.
$"%,### unfavorable.
$/",### unfavorable.
none of these amounts.
Digregory ma'es all purchases on account, subect to the following payment pattern:+aid in the
month of purchase: &#9+aid in the first month following purchase: (#9+aid in the second month
following purchase: !#9.f purchases for :anuary, 6ebruary, and ;arch were $"##,###, $!<#,###, and
$"&#,###, respectively, what were the firm's budgeted payments in ;arch=
$(8,###.
$!&<,###.
$!%%,###.
$!8%,###.
0ome other amount.
;arch
)udgeted +urchases for ;arch "&####
&#9 are paid in the same month (8###
(#9 of previous month purchases !#<###
!#9 of :anuary "####
3otal Cash Collected !8%###
>hich of the following budgets is based on many other master,budget components=
direct labor budget.
overhead budget.
sales budget.
cash budget.
selling and administrative e*pense budget.
?uattro began operations in April of this year. .t ma'es all sales on account, subect to the following
collection pattern: &#9 are collected in the month of sale7 (#9 are collected in the first month after
sale7 and !#9 are collected in the second month after sale. .f sales for April, ;ay, and :une were
$(#,###, $<#,###, and $%#,###, respectively, what were the firm's budgeted collections for ;ay=
$"!,###.
$(#,###.
$(8,###.
$%-,###.
0ome other amount.
;ay
)udgeted sales for ;ay <####
&#9 are collected in the same month "/###
(#9 of previous month sale &(###
3otal Cash Collected (####
)ird plans to sell -,### units each quarter ne*t year. During the first two quarters each unit will sell
for $!"7 during the last two quarters the sales price will increase $!.-# per unit. >hat is )ird's
estimated sales revenue for ne*t year=
$"/#,###.
$"--,###.
$"%#,###.
$"//,###.
0ome other amount.
@nits 0elling price 3otal 0ales
-,### !" (####
-,### !" (####
-,### !&.- (%-##
-,### !&.- (%-##
3otal 0ales Aevenue "--###
A formal budget program will almost always result in:
higher sales.
more cash inflows than cash outflows.
decreased e*penses.
improved profits.
a detailed plan against which actual results can be compared.
Bor'ley Corporation plans to sell /!,### units of its single product in ;arch. 3he company has ",<##
units in its ;arch ! finished,goods inventory and anticipates having ",/## completed units in
inventory on ;arch &!. Cn the basis of this information, how many units does Bor'ley plan to
produce during ;arch=
/#,(##.
/!,/##.
/&,<##.
/(,"##.
0ome other amount.
;arch
0ales in @nits /!,###
Add 4nding .nventory "/##
less Cpening .nventory ,"<##
+roduced /#,(##
;artin Company, which applies overhead to production on the basis of machine hours, reported the
following data for the period ust ended:Actual units produced: 8,###Actual variable overhead
incurred: $-/,/##Actual machine hours wor'ed: !(,###0tandard variable overhead cost per machine
hour: $&.-#
.f ;artin estimates two hours to manufacture a completed unit, the company's variable,overhead
efficiency variance is:
$!,(## favorable.
$!,(## unfavorable.
$%,### favorable.
%,### unfavorable.
some other amount not listed above.
5erna's ma'es all sales on account, subect to the following collection pattern: "#9 are collected in
the month of sale7 %#9 are collected in the first month after sale7 and !#9 are collected in the second
month after sale. .f sales for Cctober, Dovember, and December were $%#,###, $(#,###, and $-#,###,
respectively, what was the budgeted receivables balance on December &!=
$/#,###.
$/(,###.
$/8,###.
$-8,###.
0ome other amount.
)udgeted receivables balance on December &!
Dovember (###
December /####
3otal /(###
.nterspace ;erchandising anticipated selling "8,### units of a maor product and paying sales
commissions of $( per unit. Actual sales and sales commissions totaled &!,-## units and $!<",%##,
respectively. .f the company used a static budget for performance evaluations, .nterstate would report
a cost variance of:
$(,&##@.
$(,&##6.
$<,%##@.
$<,%##6.
some other amount not listed above.
3he comprehensive set of budgets that serves as a company's overall financial plan is commonly
'nown as:
an integrated budget.
a pro,forma budget.
a master budget.
a financial budget.
a rolling budget.
A company's plan for the acquisition of long,lived assets, such as buildings and equipment, is
commonly called a:
pro,forma budget.
master budget.
financial budget.
profit plan.
capital budget.
>ilson Corporation is budgeting its equipment needs on an ongoing basis, with a new quarter being
added to the budget as the current quarter is completed. 3his type of budget is most commonly 'nown
as a:
capital budget.
rolling budget.
revised budget.
pro,forma budget.
financial budget.
3he budgeted income statement, budgeted balance sheet, and budgeted statement of cash flows
comprise:
the final portion of the master budget.
the depiction of an organization's overall actual financial results.
the first step of the master budget.
the portion of the master budget prepared after the sales forecast and before the remainder of the
operational budgets.
the second step of the master budget.
A manufacturing firm would begin preparation of its master budget by constructing a:
sales budget.
production budget.
cash budget.
capital budget.
set of pro,forma financial statements.
Eenerally spea'ing, budgets are not used to:
identify a company's most profitable products.
evaluate performance.
create a plan of action.
assist in the control of profit and operations.
facilitate communication and coordinate activities.
Del's Diner anticipated that </,### process hours would be wor'ed during an upcoming accounting
period when, in fact, 8#,### hours were actually wor'ed. Cne of the company's cost functions is
e*pressed as follows:B 1 $!(+F G $(/#,### where +F is defined as process hours>hat is Del's
fle*ible budget for the preceding cost function=
$!,"<#,###
$",#<#,###
$!,8</,###
$!,""!,###
$",!!",###
A budget serves as a benchmar' against which:
actual results can be compared.
allocated results can be compared.
actual results become inconsequential.
allocated results become inconsequential.
cash balances can be compared to e*pense totals.
!##9 original, A Eraded, Euaranteed, Aeliable wor', please buy answer from )elow lin'
http:22wor'ban'"/%.com2q2darling,company,questions2&#--
http:22wor'ban'"/%.com2q2darling,company,questions2&#--
http:22wor'ban'"/%.com2q2darling,company,questions2&#--