< BUSA-202 Module 6 Test (2015) >

Question 1                                                                                                                                          1.5 out of 1.5 points

 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 310 hours per month and charge your customers $20 per hour. Your anticipated costs include: 

Question 2                                                                                                                                          1.5 out of 1.5 points

Which of the following would be valid explanations for an unfavorable variance in newspaper ads and signs? (Select all that apply.)                                 

Question 3                                                                                                                                          1.5 out of 1.5 points

 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 220 hours per month and charge your customers $18 per hour. Your anticipated costs include: 

Question 4                                                                                                                                          1.5 out of 1.5 points

 You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 200 hours in your first month and 240 hours in your second month of business. You charge your customers $20 per hour. Your anticipated costs include: 

Question 5                                                                                                                                          1.5 out of 1.5 points

 You collect 80% of each month's sales in the following month and the remainder is collected by the end of the second month. If your sales are budgeted to be:

January                February              March

$100,000              $120,000              $140,000

What would be your amount for Cash Collected from Customers in March on the Cash Collections Budget?

Question 6                                                                                                                                          1.5 out of 1.5 points

If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:

Total Sales Revenue       $100,000

Total Variable Costs        30,000

Total Fixed Costs              20,000

If the units sold increased by 10%, what would its operating income equal?

Question 7                                                                                                                                          1.5 out of 1.5 points

 Planet of the Crepes, Inc., is preparing its master budget for its first month of business. It expects to sell 3,000 crepes at $1 per crepes per month. It expects to collect 80% of the sales in the month of the sale and 20% in the following month. Calculate the amount of budgeted sales for its first month.

Question 8                                                                                                                                          0 out of 1.5 points

 Grass Is Browner works 30 hours at $7 per hour. It has variable costs of $6 per hour and fixed costs of $2,400. What is Grass Is Browner's break-even point in sales dollars? (Round to the nearest dollar)

Question 9                                                                                                                                          1.5 out of 1.5 points

 Leaning Tower of Pizza, Inc., is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas at $10 per pizza per month. It expects to collect 90% of the sales in the month of the sale and the remainder in the following month. Calculate its Accounts Receivable balance at the end of its first quarter.

Question 10                                                                                                                                       1.5 out of 1.5 points

 Leaning Tower of Pizza, Inc., is preparing its master budget for its first year of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its Accounts Receivable balance at the end of its first year.      

Question 11                                                                                                                                       0 out of 1.5 points

 Pasta Disasta, Inc., is preparing its master budget for its first quarter of business. It expects to sell 5,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times by purchasing 5,100 pizzas in the first month and 5,000 pizzas in the second and third months. The pizza is expected to cost $3 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of Accounts Payable on its budgeted balance at the end of the quarter.

Question 12                                                                                                                                       1.5 out of 1.5 points

Dolittle and Dalley has $4,000 in purchases for January and $5,000 in purchases for February. It expects to pay 70% of its purchases in the month the purchases are made. The remaining amount will be paid in the following month. How much does Dolittle and Dalley include as Cash Payments for Purchases in February?

Question 13                                                                                                                                       1.5 out of 1.5 points       

 If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:

Total Sales Revenue       $100,000

Total Variable Costs        40,000

Total Fixed Costs              50,000

If the units sold increased by 10%, what would its total fixed costs equal?                                            

Question 14                                                                                                                                       1.5 out of 1.5 points

 Using the incomplete Master Budget (at 100 hours) below, calculate the total variable cost on the Flexible Budget (at 120 hours).

Question 15                                                                                                                                       1.5 out of 1.5 points       

 Grass Is Browner mows lawns for 530 hours at $15 per hour. It has variable costs of $6 per hour and fixed costs of $2,400. What is Grass Is Browner's contribution margin per hour?

Question 16                                                                                                                                       1.5 out of 1.5 points

 If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:

Total Sales Revenue       $90,000

Total Variable Costs        60,000

Total Fixed Costs              20,000

If the units sold increases by 30%, what would the total contribution margin equal?

Question 17                                                                                                                                       1.5 out of 1.5 points

If Rich & Sweet Candy Company produces and sells 5,000 units, its projected revenues and costs would be as follows:

Total Sales Revenue       $90,000

Total Variable Costs        40,000

Total Fixed Costs              20,000

If the units sold increases by 20%, what would the total contribution margin equal?

Question 18                                                                                                                                       1.5 out of 1.5 points

Budgets ______.                                            

Question 19                                                                                                                                       1.5 out of 1.5 points

 Pasta Disasta, Inc., is preparing its master budget for its first quarter of business. It expects to sell 1,000 pizzas per month. It will purchase enough pizzas so that 100 pizzas are in inventory at all times. The pizza is expected to cost $4 per pizza. It expects to pay 70% in the month of purchase and the remainder in the following month. Calculate the amount of budgeted purchases for its first quarter.

Question 20                                                                                                                                       1.5 out of 1.5 points

 Match the balanced scorecard performance measure with the correct focus.