Which of the following is not used in deciding how many units to produce in a period?
-The desired number of units in ending inventory.
-The expected sales in units.
-The number of units in beginning inventory.
-The number of units of raw material in inventory.
Which of the following is a reasonable order in which to prepare budgets?
-Budgeted income statement, sales budget, cash receipts and disbursements budget.
-Cash receipts and disbursements budget, capital acquisitions budget, labor budget.
-Sales budget, production budget, material purchases budget.
-Labor budget, budgeted income statement, sales budget.
Brook Company budgets $100,000 in fixed overhead and $4. 00 per unit in variable overhead. For May, Brook expected to produce 6,000 units but because of unexpected demand actually produced 7,000 units. The actual overhead cost was $125,000. A flexible budget performance report for May would indicate that:
-Brook was $3,000 under budget (favorable) for overhead for the month
-Brook was $1,000 under budget (favorable) for overhead for the month
-Brook was $3,000 over budget (unfavorable) for overhead for the month
-Brook was $1,000 over budget (unfavorable) for overhead for the month
If a company uses responsibility accounting, a shift supervisor in the Rochester production plant should be held responsible for
-all costs associated with the Rochester plant.
-labor and material costs incurred on the supervisor's shift.
-a share of all of the company's costs.
-direct material, direct labor and all manufacturing overhead incurred on the supervisor's shift.