Man Acc Q3

35,400

30,000 U

6050

64800

77620

Static Budget

31000

Variable overhead cost variance

22000 F

3-10 years

To identify performance standards

it must be completed before the cash budget is prepared

2,160,000

3000 F

3,163,500

9.37

15000

Cash Budget

Budgeting Slack

678,000

26,000 F

16,000

5.30

294 F

156,800

increase in sales volume

developing strategies, planning, directing, and controlling

9000

expected results in the flexible budget for the actual units sold and the static budget

budget numbers are used to evaluate the performance of managers

The cash budget and budgeted financial statements together are called the

Financial Budget

Why does budgeting encourage communication?

Departments depend on one another

The direct materials budget is prepared using information from which budget?

Production budget

Why can purchases and cash payments for purchases differ in the same month

Some purchases are paid in later periods

Which budget would show expected borrowing needed to maintain a minimum cash balance

Cash Budget

A budget that adds a new future month as the current month ends is a

Continuous budget

A company expects to sell 1,000 units at $20 each. Budgeted sales are

20000

If desired ending finished goods inventory increases, required production will generally:

increase

Which budget normally comes first in the master budget

sales budget

what statement best describes a budget

a financial plan tied to goals and strategies

Which variance measures the difference between the actual allocation base used and the amount that should have been used

variable OH efficiency variance

In the variance framework, SC stands for:

Standard cost

Fixed overhead volume variance compares

Budgeted FOH to allocated FOH

A cost variance compares

actual cost to standard cost

Total variable overhead variance equals

cost variance + efficiency variance

in the variance framework, AC stands for

Actual cost

An efficiency variance compares

actual quantity of an input used to the standard quantity

What is a reason companies use standard cost systems

prepare the master budget

In the variance framework, AQ stands for

Actual quantity

597 F

19,300

25,000 F

6,215

9.37

648,900

15,000

90,000

increase in sales volume

static budget

156,800

22,000 F

Developing strategies, planning, directing, and controlling

721,000

532,000

50,460

3,000 F

To ensure the accuracy of the financial records

600,000

Inventory, purchases, and cost of goods sold budget

15,000

64,800

5.30

30,000 U

variable overhead cost variance

Benchmark to evaluate employees’ performance

It includes the sales budget

Operational

Budget numbers are used to evaluate the performance of managers

Expected results in the flexible budget for the actual units sold and the static budget

Which budget is used to prepare the direct materials budget

production budget

if sales are 500 units at $30 each, budgeted sales equal:

15,000

A continuous budget does what?

Adds a new future period as one ends

On a flexible budget, which amount normally changes as activity changes?

Total variable costs

A flexible-budget variance compares actual results to the:

Flexible budget

A sales-volume variance compares the flexible budget to the

static budget

Budgeted hours are primarily used to calculate the

standard overhead allocation rate

Standard hours allowed are based on:

actual production

A standard calls for 3 pounds of material at $4 per pound. Standard DM cost per unit is:

$12

Which variance is NOT part of the product-cost flexible-budget variance?

Fixed OH volume variance