December cash disbursements for merchandise purchases would be:

Multiple Choice (27 questions @ 2 points each = 54 points)Please mark the answer corresponding to the BEST answer.   Manufacturing overhead consists of:

A continuous (or perpetual) budget:

Problem 1 (7 points) Skyway Company manufactures dining carts for airlines.  The company uses variable costing for internal management reports and absorption costing for external reporting.  The company has the following (incomplete) data related to inventory and income     2013 2014 2015 Beginning Inventory (units) 200   e Ending Inventory (units) a b f Variable Costing net operating income $260,000 d $320,000 Absorption Costing net operating income c $300,000 g             The company’s fixed manufacturing overhead was constant over the three years at $500,000.  Production was also constant over the three-year period at 2,000 units per year.  Sales (in units) were as follows: 1,800 units in 2013; 2,200 units in 2014;2,200 units in 2015.  Find the missing amounts in the table above. Input your answers for letters a-g.   

Problem 2 (25 points)Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations follow: Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January. Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible. The cost of goods sold is 65% of sales. The company desires ending merchandise inventory to equal 80% of the following month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,000. Monthly depreciation is $16,000. Ignore taxes.  Required:a. Prepare a Schedule of Expected Cash Collections for November and December.  (4 points)b. Prepare a Merchandise Purchases Budget for November and December. (4 points)c. Prepare Cash Budgets for November and December. (4 points)

Mancuso Corporation has provided its contribution format income statement for January. The company produces and sells a single product.  If the company sells 3,100 units, its total contribution margin should be closest to:

National Telephone company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company’s controller has suggested initiating a formal budgeting process. Which of the following steps will NOT help the company gain maximum acceptance by employees of the proposed budgeting system?

Exam 4 (Chaps 13-17)-1.pdf

Problem 4 (10 points)Hampshire Industries has two geographic segments that they operate – Eastern and Western.  The following information pertains provides segmented sales and cost data that have been provided to you by the newly hired accountant.    Total Eastern Western Sales $1,000,000 $800,000 $200,000 Variable Costs $450,000 $350,000 $100,000 Fixed Costs $151,250     Of the fixed costs, $50,000 would be eliminated if we eliminated the Western segment and $75,000 would be eliminated if we eliminated the Eastern segment. Required: a. Compute the contribution margin for the Eastern segment. (1 points) b. Compute the segment margin for the Eastern segment. (1 points) c. Compute the contribution margin for the Western segment. (1 points) d. Compute the segment margin for the Western segment. (1 points) e. If Hampshire decided to eliminate the Western segment, how would the overall company income be affected?  (1 point) f. What is the break-even in sales dollars for Hampshire? (1 point) g. If total sales increase by 20%, compute the new operating income that would result. (1 point) h. For your calculation in g, list 3 assumptions that you used in your calculation. (3 points)

Use the following information to answer questions 20 & 21.Lehner Corporation has provided the following data from its activity-based costing accounting system: Distribution of Resource Consumption across Activity Cost Pools:Activity Cost Pools The “Other” activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?