90.2K

Verified Solution

Link Copied!

22. A purpose of standard costing is to:

eliminate the need for actual costing for external reporting purposes

simplify costing procedures

replace budgets and budgeting

punish employees who do not reach targets

24. Depreciation on the production equipment would appear in which of the following budgets?

selling and administrative expense budget

production budget

cash budget

manufacturing overhead budget

29. N Company expects to incur the following per-unit costs for 1,000 units of production: Direct materials of 3 pounds per unit at $5 per pound AND direct labor of hour at $24 per hour AND variable overhead at 75 percent of direct labor costs AND fixed overhead at 50 percent of direct labor cost. What is the total amount of direct labor included in the direct labor budget?

$28,500

$13,500

$6,000

$9,000

$7,500

33. Which of the following is usually perceived as being the master budget's greatest advantage to management?

required planning

performance analysis

increased coordination

increased communication

34. To meet production needs, Q Company will need to purchase $30,500 of raw materials in April. All raw materials purchased in a month are paid for in the month following their purchase. The beginning inventory of merchandise for April is $1,500 and an ending inventory for April of $2,000 is desired. The April 1 balance in accounts payable is $13,000. What would be expected to be the April 30 ending balance in accounts payable for Q Company?

$29,500

$30,000

$30,500

$31,000

$13,000

Answer & Explanation Solved by verified expert

See Answer