In a situation where there are no production resource limitations, which TWO of the following items of information must be available for the production budget to be completed?

The following details have been extracted from the receivables collection records of C Co.

Invoices are issued on the last day of each month.
Customers paying in the month after sale are entitled to deduct a 2% settlement discount. Credit sales values for June to September are budgeted as follows.

What is the amount budgeted to be received from credit sales in September?

An extract from a company's sales budget is as follows:

Ten per cent of sales are paid for immediately in cash. Of the credit customers, 30 per cent pay in the month following the sale and are entitled to a one per cent discount. The remaining customers pay two months after the sale is made.

What is the value of sales receipts shown in the company's cash budget for December?

Budgeted production in a factory for next period is 4,800 units. Each unit requires five labour hours to make. Labour is paid $10 per hour. Idle time represents 20% of the total labour time.

What is the budgeted total labour cost for the next period?

Budgeted sales of X for December are 18,000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for December are budgeted to be 15,000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check.

What is the production budget for X for December?

_______ units

Which of the following control actions could be taken to help eliminate an adverse direct labour efficiency variance?

1. Employ more highly skilled labour
2. Ensure stricter supervision of labour workers
3. Ask employees to work paid overtime

The following statements relate to fixed budgets and flexible budgets.

1. If production levels far exceed those anticipated, relying on a fixed budget is likely to result in massive variances
2. Flexible budgets assist management control by providing dynamic, comparable information
3. Flexible budgets are always superior to fixed budgets

Which statements are true?

Which of the following statements are true?

1. A flexed budget allows businesses to evaluate a manager's performance more fairly
2. A fixed budget is useful for defining the broad objectives of the organisation
3. Relying on fixed budgets alone would usually give rise to massive variances

The following extract is taken from the production cost budget of S Co.

What is the budget cost allowance for an activity level of 4,000 units?

If a company has no production resource limitations, in which order would the following budgets be prepared?

1. Material usage budget
2. Sales budget
3. Material purchase budget
4. Finished goods inventory budget
5. Production budget
6. Material inventory budget

A company plans to sell 24,000 units of product R next year. Opening inventory of R is expected to be 2,000 units and PQ Co plans to increase inventory by 25 per cent by the end of the year.

How many units of product R should be produced next year?

______ units

Each unit of product Zeta requires 3 kg of raw material and 4 direct labour hours. Material costs $2 per kg and the direct labour rate is $7 per hour.

The production budget for Zeta for April to June is as follows.

Wages are paid 75% in the month of production and 25% in the following month.

What is the figure to be included in the cash budget for May in respect of wages?

$_______

A company manufactures a single product, M. Budgeted production output of product M during August is 200 units. Each unit of product M requires 6 labour hours for completion and PR Co anticipates 20 per cent idle time. Labour is paid at a rate of $7 per hour.

What is the direct labour cost budget for August?

Each unit of product Echo takes five direct labour hours to make. Quality standards are high, and 8% of units are rejected after completion as sub-standard. Next month's budgets are as follows.

All inventories of finished goods must have successfully passed the quality control check.

What is the direct labour hours budget for the month?

The quantity of material in the material purchases budget is greater than the inferred from quantity of material in the material usage budget.

Which of the following statements can be this situation?

BDL plc is currently preparing its cash budget for the year to 31 March 20X8. An extract from its sales budget for the same year shows the following sales values.

40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after sale and take a 2% discount; 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts.

What is the value of sales receipts to be shown in the cash budget for May 20X7?

When preparing a production budget, what does the quantity to be produced equal?

Which of the following BEST describes the purpose of a flexible budget?

Each unit of product Zeta requires 3 kg of raw material and 4 direct labour hours. Material costs $2 per kg and the direct labour rate is $7 per hour.

The production budget for Zeta for April to June is as follows.

Raw material opening inventories are budgeted as follows.

The closing inventory budgeted for June is 3,900 kg.
Material purchases are paid for in the month following purchase.

What is the figure to be included in the cash budget for June in respect of payments for purchases?

Each unit of product Alpha requires 3 kg of raw material. Next month's production budget for product Alpha is as follows.

How many kilograms of raw materials should be purchased next month?

______ kgs

Extracts from a company's budget are as follows:

The standard variable production overhead cost per unit is $5. Variable production overhead is paid 70 per cent in the month incurred and 30 per cent in the following month.

Fixed production overhead cost is paid in the month following that in which it is incurred and includes depreciation of $2,280 per month.

What is the payment for total production overhead cost shown in the cash budget for September?

An accountant wishes to use the following spreadsheet to calculate budgeted production units.

Which formula should be entered in cell B5?

The following details have been extracted from the payables' records of X Co:

Purchases for July to September are budgeted as follows:

For suppliers paid in the month of purchase, a settlement discount of 5% is received.

What is the amount budgeted to be paid to suppliers in September?

X department is a division of W Plc. X department usually has a quarterly wages cost of $4,500,000. Quarterly material costs are usually around $2,000,000. W Plc made a central decision to award all employees a wages increase of 2%.

Which of the following variances for the latest quarter are worth investigating?

1. Direct material price variance $400 (A)
2. Labour rate variance $90,000 (A)
3. Sales volume variance $4,000,000 (F)

What does a master budget comprise?