Question 1
You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 310 hours per month and charge your customers $20 per hour. Your anticipated costs include:
Question 2
Which of the following would be valid explanations for an unfavorable variance in newspaper ads and signs? (Select all that apply.)
Question 3
You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 220 hours per month and charge your customers $18 per hour. Your anticipated costs include:
Question 4
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 200 hours in your first month and 240 hours in your second month of business. You charge your customers $20 per hour. Your anticipated costs include:
Question 5
You collect 80% of each month's sales in the following month and the remainder is collected by the end of the second month. If your sales are budgeted to be:
January February March
$100,000 $120,000 $140,000
What would be your amount for Cash Collected from Customers in March on the Cash Collections Budget?
Question 6
If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:
Total Sales Revenue $100,000
Total Variable Costs 30,000
Total Fixed Costs 20,000
If the units sold increased by 10%, what would its operating income equal?
Question 7
Planet of the Crepes, Inc., is preparing its master budget for its first month of business. It expects to sell 3,000 crepes at $1 per crepes per month. It expects to collect 80% of the sales in the month of the sale and 20% in the following month. Calculate the amount of budgeted sales for its first month.
Question 8
Grass Is Browner works 30 hours at $7 per hour. It has variable costs of $6 per hour and fixed costs of $2,400. What is Grass Is Browner's break-even point in sales dollars? (Round to the nearest dollar)
Question 9
Leaning Tower of Pizza, Inc., is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas at $10 per pizza per month. It expects to collect 90% of the sales in the month of the sale and the remainder in the following month. Calculate its Accounts Receivable balance at the end of its first quarter.
Question 10
Leaning Tower of Pizza, Inc., is preparing its master budget for its first year of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its Accounts Receivable balance at the end of its first year.
Question 11
Pasta Disasta, Inc., is preparing its master budget for its first quarter of business. It expects to sell 5,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times by purchasing 5,100 pizzas in the first month and 5,000 pizzas in the second and third months. The pizza is expected to cost $3 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of Accounts Payable on its budgeted balance at the end of the quarter.
Question 12
Dolittle and Dalley has $4,000 in purchases for January and $5,000 in purchases for February. It expects to pay 70% of its purchases in the month the purchases are made. The remaining amount will be paid in the following month. How much does Dolittle and Dalley include as Cash Payments for Purchases in February?
Question 13
If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:
Total Sales Revenue $100,000
Total Variable Costs 40,000
Total Fixed Costs 50,000
If the units sold increased by 10%, what would its total fixed costs equal?
Question 14
Using the incomplete Master Budget (at 100 hours) below, calculate the total variable cost on the Flexible Budget (at 120 hours).
Question 15
Grass Is Browner mows lawns for 530 hours at $15 per hour. It has variable costs of $6 per hour and fixed costs of $2,400. What is Grass Is Browner's contribution margin per hour?
Question 16
If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:
Total Sales Revenue $90,000
Total Variable Costs 60,000
Total Fixed Costs 20,000
If the units sold increases by 30%, what would the total contribution margin equal?
Question 17
If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:
Total Sales Revenue $90,000
Total Variable Costs 40,000
Total Fixed Costs 20,000
If the units sold increases by 20%, what would the total contribution margin equal?
Question 18
Budgets ______.
Question 19
Pasta Disasta, Inc., is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times. The pizza is expected to cost $4 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of budgeted purchases for its first quarter.
Question 20
Match the balanced scorecard performance measure with the correct focus.