Kidder Company began its operations on March 31 of the currentyear. Projected ma
ID: 2433872 • Letter: K
Question
Kidder Company began its operations on March 31 of the currentyear. Projected manufacturing costs for the first three months ofbusiness are $156,800, $195,200, and $217,600, respectively, forApril, May, and June. Depreciation, insurance, and property taxesrepresent $28,800 of the estimated monthly manufacturing costs.Insurance was paid on March 31, and property taxes will be paid inNovember. Three-fourths of the remainder of the manufacturing costsare expected to be paid in the month in which they are incurred,with the balance to be paid in the following month. The cashpayments for manufacturing in the month of April are:a.)128000
b.)96000
c.)156800
d.)117000
Detailed supplemental schedules based on department responsibilityare often prepared for major items in the operating expensesbudget.
a.)True
b.)False
Supervisor salaries and indirect factory wages would normallyappear in the direct labor cost budget.
a.)True
b.)False
The budget procedures used by a large manufacturer of automobileswould probably not differ from those used by a small manufacturerof paper products.
a.)True
b.)False
A budget procedure that provides for the maintenance at all timesof a twelve-month projection into the future is called continuousbudgeting.
a.)True
b.)False
A formal written statement of management's plans for the future,expressed in financial terms, is called a budget.
a.)True
b.)False
Goal conflict can be avoided if budget goals are carefully designedfor consistency across all areas of the organization.
a.)True
b.)False
In preparing flexible budgets, the first step is to identify thefixed and variable components of the various costs and expensesbeing budgeted.
a.)True
b.)False
Supervisor salaries, maintenance, and indirect factory wages wouldnormally appear in the operating expenses budget.
a.)True
b.)False
The flexible budget is, in effect, a series of static budgets fordifferent levels of activity.
a.)True
b.)False
Explanation / Answer
b.)96000 April manufacturing Cost = $156,800 - $28,800(Depreciation,Insurance and Property tax) = $128,000 Payment in April = $128,000 x3/4 = $96,000 Detailed supplemental schedules based on departmentresponsibility are often prepared for major items in the operatingexpenses budget.a.)True
Supervisor salaries and indirect factory wages would normallyappear in the direct labor cost budget.
b.)False The budget procedures used by a large manufacturer ofautomobiles would probably not differ from those used by a smallmanufacturer of paper products.
a.)True
A budget procedure that provides for the maintenance at alltimes of a twelve-month projection into the future is calledcontinuous budgeting.
a.)True
A formal written statement of management's plans for thefuture, expressed in financial terms, is called a budget.
a.)True
Goal conflict can be avoided if budget goals are carefullydesigned for consistency across all areas of the organization.
a.)True
In preparing flexible budgets, the first step is to identifythe fixed and variable components of the various costs and expensesbeing budgeted.
b.)False
Supervisor salaries, maintenance, and indirect factory wages wouldnormally appear in the operating expenses budget.
a.)True
The flexible budget is, in effect, a series of static budgetsfor different levels of activity.
a.)True
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.