251. Refer to Figure 8-7. What is the balance of the cash account at the end of July?
a. $8,500
b. $15,500
c. $62,500
d. $114,000
$25,000 + $72,000 + $110,000 – $45,000 – 56,500 – 43,000 = $62,500
252. Refer to Figure 8-7. What are the total assets at the end of July?
a. $439,000
b. $446,500
c. $515,500
d. $653,500
$62,500 + $288,000 + $60,000 + $243,000 = $653,500
253. A budget that is developed around one particular level of activity is
a. a static budget
b. a continuous budget
c. an incremental budget
d. none of these
254. When budgets are used for control,
a. budgeted amounts from different years are compared
b. actual amounts from different years are compared
c. budgeted amounts are compared to actual amounts
d. none of these
Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year
with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2016 26,000
Unit production for 2016 26,000
Budgeted fixed overhead for 2016:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2016 24,000
Actual unit production for 2016 28,000
Actual fixed overhead for 2016:
Supervision $ 850
Depreciation 2,000
Rent 100
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
255. Refer to Figure 8-8. The total budgeted costs for 2016 were
a. $11,440
b. $13,510
c. $14,340
d. $13,460
FC: $800 + $2,000 + $100 = $ 2,900
VC: $3,900 + $5,200 + $520 + $1,300 + $520 = 11,440
TC: $14,340
256. Refer to Figure 8-8. The budgeted cost for direct labor for 2016 was
a. $1,200
b. $1,300
c. $4,800
d. $5,200
26,000 × $0.20 = $5,200
257. Refer to Figure 8-8. The static budget variance for rent is
a. $100 F
b. $100 U
c. $-0-
d. $50 U
Actual $100
Budget 100
Variance $ -0-
258. Refer to Figure 8-8. The actual cost for direct materials for 2016 was
a. $3,600.
b. $3,900.
c. $4,500.
d. $3,500.
$3,500 is given.
259. Refer to Figure 8-8. The static budget variance for total fixed overhead is
a. $50 U
b. $50 F
c. $-0-
d. $100 U
Actual $2,950
Budget 2,900
Variance $ 50 U
260. Refer to Figure 8-8. The static budget variance for direct materials is
a. $100 F
b. $100 U
c. $400 F
d. $400 U
Actual $3,500
Budget 3,900
Variance $ 400 F
a. $8,500
b. $15,500
c. $62,500
d. $114,000
$25,000 + $72,000 + $110,000 – $45,000 – 56,500 – 43,000 = $62,500
252. Refer to Figure 8-7. What are the total assets at the end of July?
a. $439,000
b. $446,500
c. $515,500
d. $653,500
$62,500 + $288,000 + $60,000 + $243,000 = $653,500
253. A budget that is developed around one particular level of activity is
a. a static budget
b. a continuous budget
c. an incremental budget
d. none of these
254. When budgets are used for control,
a. budgeted amounts from different years are compared
b. actual amounts from different years are compared
c. budgeted amounts are compared to actual amounts
d. none of these
Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year
with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2016 26,000
Unit production for 2016 26,000
Budgeted fixed overhead for 2016:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2016 24,000
Actual unit production for 2016 28,000
Actual fixed overhead for 2016:
Supervision $ 850
Depreciation 2,000
Rent 100
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
255. Refer to Figure 8-8. The total budgeted costs for 2016 were
a. $11,440
b. $13,510
c. $14,340
d. $13,460
FC: $800 + $2,000 + $100 = $ 2,900
VC: $3,900 + $5,200 + $520 + $1,300 + $520 = 11,440
TC: $14,340
256. Refer to Figure 8-8. The budgeted cost for direct labor for 2016 was
a. $1,200
b. $1,300
c. $4,800
d. $5,200
26,000 × $0.20 = $5,200
257. Refer to Figure 8-8. The static budget variance for rent is
a. $100 F
b. $100 U
c. $-0-
d. $50 U
Actual $100
Budget 100
Variance $ -0-
258. Refer to Figure 8-8. The actual cost for direct materials for 2016 was
a. $3,600.
b. $3,900.
c. $4,500.
d. $3,500.
$3,500 is given.
259. Refer to Figure 8-8. The static budget variance for total fixed overhead is
a. $50 U
b. $50 F
c. $-0-
d. $100 U
Actual $2,950
Budget 2,900
Variance $ 50 U
260. Refer to Figure 8-8. The static budget variance for direct materials is
a. $100 F
b. $100 U
c. $400 F
d. $400 U
Actual $3,500
Budget 3,900
Variance $ 400 F
