Please just answer the multiple choice questions. They do not require me to show my work.

| October 22, 2018

Student ID: 21535917

Exam:
061683RR – PLANNING, PERFORMANCE
.jpg”>

When you
have completed your exam and reviewed your answers, click Submit Exam.
Answers will not be recorded until you hit Submit Exam. If you need to
exit before completing the exam, click Cancel Exam.

Questions
1 to 20:Select the best answer to each question. Note that a question
and its answers may be split across a pagebreak, so be sure that you
have seen the entire question and all the answers before choosing
an answer.

Use the following information to answer this
question.

Cole
Laboratories makes and sells a lawn fertilizer called Fastgro. The company has
developed standard costs for one bag of Fastgro as follows:

Standard

Standard
Cost

Quantity

per bag

Direct
material

20 pounds

$8.00

Direct
labor

0.1 hours

$1.10

Variable
overhead

0.1 hours

$0.40

The
company had no beginning inventories of any kind on January 1. Variable
overhead is applied to production on the basis of standard direct-labor hours.
During January, the company recorded the following activity:

• Production of Fastgro:
4,000 bags
• Direct
materials purchased: 85,000 pounds at a cost of $32,300
• Direct-labor
worked: 390 hours at a cost of $4,875
• Variable
overhead incurred: $1,475
• Inventory
of direct materials on January 31: 3,000 pounds

1.The
materials quantity variance for January is

A. $300 F.

B. $800 U.

C. $300 U.

D.
$750 F.

2.There are
various budgets within the master budget. One of these budgets is the
production budget.Which of the following best describes the
production budget?

A. It details the required
direct-labor hours.

B. It summarizes the costs of
producing units for the budget period.

C. It details the required
raw materials purchases.

D.
It’s calculated based on the sales budget and the desired
ending inventory.

3.A company’s average operating
assets are $220,000, and its net operating income is $44,000. Thecompany
invested in a new project, increasing average assets to $250,000 and increasing
its net operating

income
to $49,550. What is the project’s residual income if the required rate of
return is 20%?

A. $450

B.
($450)

C. $600

D.
($600)

4.Coles Company, Inc. makes and
sells a single product, Product R. Three yards of Material K are neededto
make one unit of Product R. Budgeted production of Product R for the next five
months is as follows:

14,000
August
units

14,500
September
units

15,500
October
units

12,600
November
units

11,900
December
units

The company wants to maintain monthly ending inventories of
Material K equal to 20% of the following month’s production needs. On July 31,
this requirement wasn’t met because only 2,500 yards of Material K were on
hand. The cost of Material K is $0.85 per yard. The company wants to prepare a
Direct Materials Purchase Budget for the rest of the year.

The total cost of Material
K to be purchased in August is

A. $42,300.

B.
$48,200.

C. $33,840.

D.
$40,970.

5.Lyons
Company consists of two divisions, A and B. Lyons Company reported a
contribution margin of$50,000 for Division A and had a contribution
margin ratio of 30% in Division B, when sales in Division B were $200,000. Net
operating income for the company was $25,000, and traceable fixed expenses were
$40,000. Lyons Company’s common fixed expenses were

A. $85,000.

B.
$45,000.

C. $70,000.

D.
$40,000.

6.Super
Drive is a computer hard-drive manufacturer. The company’s balance sheet for
the fiscal yearended on November 30 appears below:

Super Drive, Inc.
Statement of Financial Position
For the year ended November 30
Assets:

Cash

$52,000

Accounts
receivable

150,000

Inventory

315,000

Property,
plant, and equipment

1,000,000

Total
Assets

$1,517,000

Liabilities
and stockholders’ equity:

Accounts
payable

$175,000

Common
stock

900,000

Retained
earnings

442,000

Total
liabilities and

stockholders’
equity

$1,517,000

Additional information
regarding Super Drive’s operations appears below:


Sales
are budgeted at $520,000 for December and $500,000 for January.

• Collections
are expected to be 60% in the month of sale and 40% in the month following
sale. There are no bad debts.

80% of the disk-drive components are purchased in
the month prior to the month of the sale, and 20%
are
purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.

Payment for components purchased is made in the
month following the purchase.

Assume that the cost of goods sold is 80% of
sales.

The budgeted cash
collections for the upcoming December should be

A. $520,000.

B.
$462,000.

C. $402,000.

D.
$208,000.

7.Last year, the House of Orange had
sales of $826,650, net operating income of $81,000, and operatingassets
of $84,000 at the beginning of the year and $90,000 at the end of the year.
What was the company’s turnover rounded to the nearest tenth?

A. 10.2

B.
9.2

C. 9.8

D.
9.5

Use the
following information to answer this question.

Moorhouse
Clinic uses client visits as its measure of activity. During December, the
clinic budgeted for 3,700 client visits, but its actual level of activity was
3,690 client visits. The clinic has provided the following data concerning the
formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Fixed element

Variable element

per month

per client-visit

Revenue

____-____

$25.10

Personnel
expenses

$27,100

$7.10

Medical supplies

1,500

4.50

Occupancy
expenses

6,000

1.00

Administrative
expenses

3,000

0.10

Total
expenses

$37,600

$12.70

Actual results

for
December:

Revenue

$96,299

Personnel
expenses

$51,009

Medical
supplies

$17,425

Occupancy
expenses

$9,240

Administrative
expenses

$3,239

8.The activity variance for
personnel expenses in December would beclosestto

A. $2,361 U.

B.
$2,361 F.

C. $71 F.

D.
$71 U.

Use the following
information to answer this question.

Moorhouse Clinic uses client visits as its measure of
activity. During December, the clinic budgeted for 3,700 client visits, but its
actual level of activity was 3,690 client visits. The clinic has provided the
following data concerning the formulas used in its budgeting and its actual
results for December:

Data used in budgeting:

Fixed element

Variable element

per month

per client-visit

Revenue

____-____

$25.10

Personnel
expenses

$27,100

$7.10

Medical
supplies

1,500

4.50

Occupancy
expenses

6,000

1.00

Administrative
expenses

3,000

0.10

Total
expenses

$37,600

$12.70

Actual
results

for
December:

Revenue

$96,299

Personnel
expenses

$51,009

Medical
supplies

$17,425

Occupancy
expenses

$9,240

Administrative
expenses

$3,239

9.The revenue variance for
December would beclosestto

A. $3,680 F.

B.
$3,429 F.

C. $3,429 U.

D.
$3,680 U.

10.The Charade Company is preparing its Manufacturing
Overhead budget for the fourth quarter of theyear. The budgeted
variable factory overhead is $5.00 per direct-labor hour; the budgeted fixed
factory overhead is $75,000 per month, of which $15,000 is factory
depreciation. If the budgeted direct-labor time for December is 8,000 hours,
then total budgeted factory overhead per direct-labor hour (rounded) is

A. $9.38.

B.
$14.38.

C. $12.50.

D.
$16.25.

11.Vandall Corporation manufactures
and sells a single product. The company uses units as the measureof
activity in its budgets and performance reports. During April, the company
budgeted for 7,300 units, but its actual level of activity was 7,340 units. The
company has provided the following data concerning the formulas used in its
budgeting and its actual results for April:
Data used
in budgeting:

Fixed element

Variable element

per month

per unit

Revenue

___-___

$35.40

Direct
labor

0

$3.30

Direct
materials

0

15.90

Manufacturing
overhead

49,200

1.20

Selling
and

administrative
expenses

26,600

0.10

Total
expenses

$75,800

$20.50

Actual results

for
April:

Revenue

$254,146

Direct
labor

$24,722

Direct
materials

$116,496

Manufacturing
overhead

$59,608

Selling
and

administrative
expenses

$26,494

The
overall revenue and spending variance (i.e., the variance for net operating
income in the revenue and spending variance column on the flexible budget
performance report) for April would be closest to

A. $6,144 F.

B.
$6,740 U.

C. $6,144 U.

D.
$6,740 F.

Use the following
information to answer this question.

Cole
Laboratories makes and sells a lawn fertilizer called Fastgro. The company has
developed standard costs for one bag of Fastgro as follows:

Standard

Standard Cost

Quantity

per bag

Direct material

20 pounds

$8.00

Direct
labor

0.1 hours

$1.10

Variable
overhead

0.1 hours

$0.40

The company had no beginning inventories of any kind on
January 1. Variable overhead is applied to production on the basis of standard direct-labor
hours. During January, the company recorded the following activity:


Production
of Fastgro: 4,000 bags

Direct materials purchased: 85,000 pounds at a
cost of $32,300

Direct-labor worked: 390 hours at a cost of $4,875


Variable overhead incurred: $1,475

Inventory of direct materials on January 31: 3,000
pounds

12.The labor rate variance
for January is

A. $585 U.

B.
$585 F.

C. $475 F.

D.
$475 U.

Use the following
information to answer this question.

Werber
Clinic uses client visits as its measure of activity. During January, the
clinic budgeted for 2,700 client visits, but its actual level of activity was
2,730 client visits. The clinic has provided the following data concerning the
formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed element

Variable element

per month

per client-visit

Revenue

___-___

$33.60

Personnel
expenses

$22,100

$8.70

Medical
supplies

1,100

6.60

Occupancy
expenses

5,600

1.60

Administrative
expenses

3,700

0.40

Total
expenses

$32,500

$17.30

Actual
results

for
January:

Revenue

$93,408

Personnel
expenses

$46,251

Medical
supplies

$19,348

Occupancy
expenses

$9,508

Administrative
expenses

$4,772

13.The activity variance for administrative
expenses in January would beclosestto

A. $8 U.

B.
$8 F.

C. $12 U.

D.
$12 F.

Use
the following information to answer this question.

The Adams
Company, a merchandising firm, has budgeted its activity for November according
to the following information:


Sales
were at $450,000, all for cash.

Merchandise inventory on October 31 was $200,000.

The cash balance on November 1 was $18,000.

Selling and administrative expenses are budgeted
at $60,000 for November and are paid for in cash.

Budgeted depreciation for November is $25,000.

The planned merchandise inventory on November 30
is $230,000.

The cost of goods sold is 70% of the selling price.


All purchases are paid for in cash.

14.The budgeted cash
disbursements for November are

A. $405,000.

B.
$345,000.

C. $530,000.

D.
$375,000.

15.
The LFM
Company makes and sells a single product, Product T. Each unit of Product T
requires 1.3hours of direct labor at a rate of $9.10 per direct-labor
hour. LFM Company needs to prepare a direct-labor budget for the second quarter
of next year. The budgeted direct-labor cost per unit of Product T would be

A. $10.40.

B.
$7.00.

C. $11.83.

D.
$9.10.

16.Manufacturing
Cycle Efficiency (MCE) is computed as

A. Throughput
Time divided by Delivery Cycle Time.

B.
Process Time divided by Delivery Cycle Time.

C. Value-Added
Time divided by Delivery Cycle Time.

D.
Value-Added Time divided by Throughput Time.

Use the
following information to answer this question.

Cole
Laboratories makes and sells a lawn fertilizer called Fastgro. The company has
developed standard costs for one bag of Fastgro as follows:

Standard

Standard
Cost

Quantity

per bag

Direct
material

20 pounds

$8.00

Direct
labor

0.1 hours

$1.10

Variable
overhead

0.1 hours

$0.40

The company had no beginning
inventories of any kind on January 1. Variable overhead is applied to
production on the basis of standard direct-labor hours. During January, the
company recorded the following activity:


Production
of Fastgro: 4,000 bags

Direct materials purchased: 85,000 pounds at a
cost of $32,300

Direct-labor worked: 390 hours at a cost of $4,875


Variable overhead incurred: $1,475

Inventory of direct materials on January 31: 3,000
pounds

17.The labor efficiency
variance for January is

A. $110 F.

B.
$130 U.

C. $350 U.

D.
$475 F.

18.The cash budget must be
prepared before you can complete the

A. schedule of cash
disbursements.

B.
raw materials purchases budget.

C. production budget.

D.
budgeted balance sheet.

Use the following
information to answer this question.

Werber
Clinic uses client visits as its measure of activity. During January, the
clinic budgeted for 2,700 client visits, but its actual level of activity was
2,730 client visits. The clinic has provided the following data concerning the
formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed element

Variable element

per month

per client-visit

Revenue

___-___

$33.60

Personnel
expenses

$22,100

$8.70

Medical
supplies

1,100

6.60

Occupancy
expenses

5,600

1.60

Administrative
expenses

3,700

0.40

Total
expenses

$32,500

$17.30

Actual
results

for
January:

Revenue

$93,408

Personnel
expenses

$46,251

Medical
supplies

$19,348

Occupancy
expenses

$9,508

Administrative
expenses

$4,772

19.The activity variance for
personnel expenses in January would beclosestto

A.
$261 F.

B. $261 U.

C. $661 U.

D.
$661 F.

20.Which of
the following willnotresult in an increase in return on
investment (ROI), assuming otherfactors remain the same?

A. An
increase in operating assets

B. A
reduction in expenses

C. An
increase in sales

D.
An increase in net operating income
.jpg”>

End of
exam

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now