QUIZ NO. 3 FUNCTIONAL AND ACTIVITY-BASED BUDGETING NAME: ____________________________________ ________________________________________________ _________________________ _____________ SCORE: ___________________ ___________________
The following information has been gathered b y the Budget Director of the Kareton Company, another outfit managed by the Masugid Company. Company. The firm manufactures and sells only one product. product. Selling !i"e e! #ni$ % &'.(( E)e"$e* #ni$ +,le+ - '((( #ni$+ Di!e"$ l,/0! "0+$ i+ &3.(( e! 10#! 24 ,n 10#! 05 DL 6 2 #ni$ 05 !0*#"$ E)e"$e* FG /eginning % 47((( #ni$+ E)e"$e* FG en*ing % '(((( #ni$+ V,!i,/le 5,"$0!8 e)en+e+ - &337(( Fi)e* 09e!1e,* - &;(( E)e E)e"$ "$e* e* R,< R,< =,$ =,$e! e!i, i,l+ l+ /eg /egin inni ning ng - '( '((( (( g,ll g,ll0n 0n++ E)e E)e"$ "$e* e* R,< R,< =,$ =,$e! e!i, i,l+ l+ en* en*in ing g % >(( >((( ( g,l g,ll0 l0n+ n+ 2 #ni$ 6 2 ? g, g ,ll0n+ 05 !,< =,$e!i,l R,< M,$e!i,l+ "0+$ 6 &( & (.2> e! g,ll0n *#!ing V,!i,/le V,!i,/le ,*=ini+$!,$i9e ,n* +elling e)en+e+ - &2.(( e! #ni$ F,"$0!8 09e!1e,* i+ ,lie* $0 <0!@-in-!0"e++ 0n $1e /,+i+ 05 *i!e"$ l,/0! 10#!+.
In assisting the company to formulate the budget, you determined the following budget parameters. 1. Budgeted Budgeted cost cost of raw raw material materialss to be be used in product production ion is is a. 1!",#$$ b. 1",%"$ c. &,%1$ !. Budget Budgeted ed raw mate materia rials ls purch purchase asess cost cost is a. !!,%#$ b. !!,"1$ c. !',()$ '. Budg Budget eted ed dir direc ectt labo laborr is a. !$,(#$ b. &',$$$ c. )!,!#$ ". *ariabl ariablee o+erhead o+erhead cost per direct direct labor labor hour hour is a. 1.)$ b. ".&$ c. 1.&$ #. i-ed i-ed o+erh o+erhead ead cos costt per direc directt labor labor hour hour is a. 1.)$ b. ".&$ c. 1.&$ ). Budget Budgeted ed cont contrib ributi ution on marg margin in is is a. #.$$ b. 1.&$ c. '."$ (. Budget Budgeted ed cost cost of good goodss sold sold full full cost/ cost/ is is a. (),#$$ b. %),#$$ c. 1%),#$$ &. 0et 0et pro profi fitt bef befor oree tata- is a. 1(&,#$$ b. 1$',#$$ c. #',$$$
d. !!,"1$ d. 1!",#$$ d. '',!$$ d. )."$ d. )."$ d. !.#& d. '$",$$$ d. !"%,#$$
%. The following information was e-tracted from the May Cash Budget of air 2tars, a groom pad for men and women3
Budget of air 2tars, a groom pad for men and women3 4-cess of cash a+ailable o+er disbursements Cash balance, May 1 Total cash disbursement for May
&$$ 1$,1$$ '!,#$$
The business can only borrow money in round figures of 1,$$$ amounts. If the business is re5uired to maintain a minimum cash balance of 1$,$$$, how much money should be borrowed in May6
a.
%,!$$
b. 1$,$$$
c.
!!,$$$
d. !',$$$
1$. era Inc. prepared the following sales budget Month Cash 2ales Credit 2ales ebruary &$,$$$ '"$,$$$ March 1$$,$$$ "$$,$$$ 7pril %$,$$$ '($,$$$ May 1!$,$$$ ")$,$$$ 8une 11$,$$$ '&$,$$$ Collections are "$9 in the month of sale, "#9 in the month following the sale, and 1$9 two months following the sale. The remaining #9 is e-pected to be uncollectible. uncollectible. The company:s company:s total budgeted collection collection from 7pril 7pril to 8une amounts to
a.
1,$%$,!#$
b. 1,'!#,#$$
c.
1,")&,#$$
d. 1,'%(,#$$
