Exam 22: Budgeting

For March, sales revenue is $1,000,000; sales commissions are 5% of sales; the sales manager's salary is $80,000; advertising expenses are $75,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,100 plus 1% of sales. Total selling expenses for the month of March are:

The master budget is an integrated set of budgets that tie together a company's operating, financing and investing activities into an integrated plan for the coming year.

Production and sales estimates for April are as follows: The budgeted total sales for April is:

Prepare a monthly flexible selling expense budget for PineTree Company for sales volumes of $300,000, $350,000, and $400,000, based on the following data:

The budget that summarizes future plans for the acquisition of fixed assets is the:

Maxim Technologies projected sales of 35,000 computers for 2012. The estimated January 1, 2012, inventory is 3,000 units, and the desired December 31, 2012, inventory is 9,000 units. What is the budgeted production (in units) for 2012?

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is:

The capital expenditures budget is part of the planned investing activities of a company.

At the beginning of the period, the Molding Department budgeted direct labor of $33,000 and supervisor salaries of $24,000 for 3,000 hours of production. The department actually completed 2,500 hours of production. Determine the budget for the department assuming that it uses flexible budgeting?

Production and sales estimates for March for the Robin Co. are as follows: The number of units expected to be manufactured in March is:

Which of the following budgets allow for adjustments in activity levels?

Budgets are normally used only by profit-making businesses.

Match the following terms with the best definition given.

The production budgets are used to prepare which of the following budgets.

A company is preparing its their Cash Budget. The following data has been provided for cash receipts and payments. The company's cash balance at January 1st is $290,000. This company desires a minimum cash balance of $340,000. What is the amount of excess cash or deficiency of cash (after considering the minimum cash balance required) for January?

The sales budget is the starting point for preparation of the direct labor cost budget.

The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. What would be the budgeted production for February?

The operating budgets of a company include:

A series of budgets for varying rates of activity is termed a(n):

The first budget to be prepared is usually the production budget.