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Which of the following is not a reason organizations use budgets?

Multiple Choice

• Communicate financial goals of the organization.

• Comply with the generally accepted accounting principles.

• Allocate resources.

• Coordinate activities of different departments.

The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.50 per unit produced; budgeted fixed factory overhead is $80,000 per month, with $17,000 of this amount being factory depreciation. If all cash expenses are paid for in the mon...

If all cash expenses are paid for in the month incurred what is the budgeted cash disbursements for manufacturing overhead if 5,500 units are produced?

Multiple Choice

• $16,500

• $82,250

• $91,500

• $99,000

The Bandeiras Company, a merchandising firm, has budgeted its activity for December according to the following information: I. Sales at $550,000, all for cash. II. Merchandise inventory on November 30 was $300,000. III. Budgeted depreciation for December is $35,000. IV. The cash balance at December 1 was $25,000. V. Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash. VI. The planned merchandise inventory on December 31 is $270,000. VII. The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash.

What are the budgeted cash disbursements for December?

Multiple Choice

• $382,500

• $442,500

• $472,500

• $477,500

Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:

Budgeted number of patient-visits	7,700
Budgeted variable overhead costs:
Supplies (@$4.60 per guest-day)	$35,420
Laundry (@$7.20 per guest-day)	55,440
Total variable overhead cost	90,860
Budgeted fixed overhead costs:
Salaries	46,200
Occupancy costs	67,760
Total fixed overhead cost	113,960
Total budgeted overhead cost	$204,820

Actual results for the month were:

Actual number of patient-visits	7,800
Supplies	$38,250
Laundry	$61,240
Salaries	$46,190
Occupancy costs	$65,650

What is the variance for supplies costs in the flexible budget performance report for the month?

Multiple Choice

• $2,370 U

• $2,370 F

• $2,830 F

• $2,830 U

Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:

Budgeted number of patient-visits	7,700
Budgeted variable overhead costs:
Supplies (@$4.60 per guest-day)	$35,420
Laundry (@$7.20 per guest-day)	55,440
Total variable overhead cost	90,860
Budgeted fixed overhead costs:
Salaries	46,200
Occupancy costs	67,760
Total fixed overhead cost	113,960
Total budgeted overhead cost	$204,820

Actual results for the month were:

Actual number of patient-visits	7,800
Supplies	$38,250
Laundry	$61,240
Salaries	$46,190
Occupancy costs	$65,650

What is the variance for laundry costs in the flexible budget performance report for the month?

Multiple Choice

• $5,080 F

• $5,080 U

• $5,800 U

• $5,800 F

Isadore Hospital bases its budgets on patient-visits. The hospital's static budget for July appears below:

Budgeted number of patient-visits	7,700
Budgeted variable overhead costs:
Supplies (@$4.60 per guest-day)	$35,420
Laundry (@$7.20 per guest-day)	55,440
Total variable overhead cost	90,860
Budgeted fixed overhead costs:
Salaries	46,200
Occupancy costs	67,760
Total fixed overhead cost	113,960
Total budgeted overhead cost	$204,820

Actual results for the month were:

Actual number of patient-visits	7,800
Supplies	$38,250
Laundry	$61,240
Salaries	$46,190
Occupancy costs	$65,650

What is the variance for occupancy costs in the flexible budget performance report for the month?

Multiple Choice

• $2,110 U

• $2,990 U

• $2,990 F

• $2,110 F

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