Please take your time to solve these Questions

_________________________________________________________________________ 1) Budgetary control involves all but one of the following: a) modifying future plans. b) analyzing differences. c) using static budgets but not flexible budgets. d) determining differences between actual and planned results.

2) Depending on the nature of the report, budget reports are prepared: a) daily. b) weekly. c) monthly. d) All of the above.

3) A production manager in a manufacturing company would most likely receive a: a) sales report. b) income statement. c) scrap report. d) shipping department overhead report.

4) A static budget is: a) a projection of budget data at several levels of activity within the relevant range of activity. b) a projection of budget data at a single level of activity. c) compared to a flexible budget in a budget report. d) never appropriate in evaluating a manager's effectiveness in controlling costs.

5) A static budget is useful in controlling costs when cost behavior is: a) mixed. b) fixed. c) variable. d) linear.

6) At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 10,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expressed as: a) $30,000 fixed plus $6 per direct labor hour variable. b) $30,000 fixed plus $9 per direct labor hour variable. c) $60,000 fixed plus $3 per direct labor hour variable. d) $60,000 fixed plus $6 per direct labor hour variable.

7) At 9,000 direct labor hours, the flexible budget for indirect materials (a variable cost) is $27,000. If $28,000 of indirect materials costs are incurred at 9,200 direct labor hours, the flexible budget report should show the following difference for indirect materials: a) $1,000 unfavorable. b) $1,000 favorable. c) $400 favorable. d) $400 unfavorable.

8) For the quarter ended March 31, 2020, Croix Company accumulates the following sales data for its newest guitar,

The Edge: $315,000 budget; $305,000 actual. Prepare a static budget report for the quarter.

9) Felix Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $0.70 Indirect materials 0.50 Utilities 0.40

Budgeted fixed overhead costs per month are supervision $4,000, depreciation $3,000, and property taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month.

Prepare a monthly flexible manufacturing overhead budget for 2020 for the expected range of activity, using increments of 1,000 direct labor hours.

10) Glenda Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2020, the master overhead budget for the Packaging Department based on 300,000 direct labor hours was as follows:

Variable Costs Fixed Costs Indirect labor $360,000 Supervision $ 60,000 Supplies and lubricants 150,000 Depreciation 24,000 Maintenance 210,000 Property taxes 18,000 Utilities 120,000 Insurance 12,000 $840,000 $114,000