Multiple choice
1.Borden Enterprises uses standard costing. For the month of April, the company reported the following data:
-Standard direct labor rate: $10 per hour
-Standard hours allowed for actual production: 8,000 hours
– Actual direct labor rate: $9.50 per hour
-Labor efficiency variance: $4,800 Favorable
The labor rate variance for April is:
A. $3,760 U
B. $3,760 F
C. $2,850 F
D. $2,850
2.Mitchell Company had the following budgeted sales for the last half of last year:
Cash sales : July 50,000; August 55,000; September45,000; October 50,000; November 60,000; December 80,000
Credit Sales: july 150,000; August 170,000; September 130,000; October 145,000; November 200,000; December 350,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
Assume that the accounts receivable balance on July 1 was $75,000. Of this amount, $60,000 represented uncollected June sales and $15,000 represented uncollected May sales. Given these data, the total cash collected during July would be:
A. $150,000
B. $235,000
C. $215,000
D. $200,000
3.Dengel Inc. is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance is $50,000.
To attain its desired ending cash balance for November, the company needs to borrow:
A. $0
B. $16,000
C. $50,000
D. $84,000
4.Dengel Inc. is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance is $50,000.
The excess (deficiency) of cash available over disbursements for November will be:
A. $34,000
B. $201,000
C. $10,000
D. $14,000