Online Access Free BUS105 Exam Questions

Which of the following statements is a true statement about flexible budgets?

• A.Selling and administrative expenses are reported in the flexible budget
• B.The actual number of units sold is irrelevant to a flexible budget
• C.The flexible budget is prepared before the master budget to assist with planning
• D.Cost variance analysis is an integral part of preparing a flexible budget

Waffles, Inc. is evaluating their annual bonus allocations for restaurant division managers. This is the segmented income statement data for the three individual restaurant locations of Waffles, Inc. What does this information tell us about the performance of each division manager?

• A.Because the western location is larger, it would be unfair to use segmented net income as a measure for comparing each manager's performance.
• B.With a net income nearly 4x higher than the other two locations, the western location manager had the best performance.
• C.With a net income of $668,800, the southern location manager had the worst performance.
• D.With the lowest costs of goods sold and operating expenses, the eastern location manager had the best performance.

Ladron Candies is analyzing sales and production data for the holiday boxes they produced last year. The company expected to use 0.10 direct labor hours to produce one box of specialty candy, and the variable overhead rate was $2.00 per hour. According to payroll records, the company paid for a total of 104,000 hours of direct labor wages. The actual variable overhead costs totaled $200,000. They sold 800,000 boxes of candy to retailers. What is the variable overhead efficiency variance?

• A.$48,000 unfavorable variable overhead efficiency variance
• B.$8,000 unfavorable variable overhead efficiency variance
• C.$48,000 favorable variable overhead efficiency variance
• D.$8,000 favorable variable overhead efficiency variance

This is the balance sheet for Swinney Services. Using trend analysis, what does this information tell us about the trends for current assets and current liabilities?

• A.Current assets increased at a rate nearly 2x higher than current liabilities
• B.Current assets increased at a rate nearly 4x higher than current liabilities
• C.Current assets increased at a rate nearly 6x higher than current liabilities
• D.Current assets increased at a rate nearly 10x higher than current liabilities

These tables pertain to the blending department of Martinez Corporation, a paint manufacturer, for the month of August.
Units accounted for in the mixing department:

Total costs to be accounted for in the mixing department:

What is the cost per equivalent unit for direct labor, and what is the cost of direct labor to be assigned to ending work in process inventory?

• A.$14 per equivalent unit; $7,000 direct labor cost assigned to ending WIP inventory
• B.$14 per equivalent unit; $8,400 direct labor cost assigned to ending WIP inventory
• C.$101 per equivalent unit; $85,850 direct labor cost assigned to ending WIP inventory
• D.$101 per equivalent unit; $60,600 direct labor cost assigned to ending WIP inventory