ACCT 434 Endless Education /uophelp.com ACCT 434 Endless Education /uophelp.com | Page 36

period can be computed at the start of that period . This feature of standard costing makes it possible to 5 . Question :( TCO 2 ) An unfavorable variance indicates that 6 . Question :( TCO 2 ) Which of the following statements is true about overhead cost variance analysis using activity-based costing ? 7 . Question :( TCO 2 ) Overhead costs have been increasing due to all of the following except 8 . Question :( TCO 2 ) Katie Enterprises reports the year-end information from 20X8 as follows : Sales ( 70,000 units ) $ 560,000 ; Cost of goods sold 210,000 ; Gross margin 350,000 ; Operating expenses 200,000 ; Operating income $ 150,000 . Katie is developing the 20X9 budget . In 20X9 , the company would like to increase selling prices by 4 %, and as a result expects a decrease in sales volume of 10 %. All other operating expenses are expected to remain constant . Assume that COGS is a variable cost and that operating expenses are a fixed cost . What is budgeted sales for 20X9 ? 9 . Question :( TCO 2 ) Hester Company budgets on an annual basis for its fiscal year . The following beginning and ending inventory levels ( in units ) are planned for the fiscal year of July 1 , 2008 , through June 30 , 2009 . July 1 , 2008 June 30 , 2009 Raw material ( note ) 40,000 10,000 Work in process 8,000 8,000 Finished goods 30,000 5,000 ( note ) Three units of raw material are needed to produce each unit of finished product . If Hester Company plans to sell 600,000 units during the 2008-2009 fiscal year , the number of units it would have to manufacture during the year would be 10 . Question :( TCO 2 ) Information pertaining to Brenton Corporation ' s sales revenue is presented in the following table : February March April Cash Sales $ 160,000 $ 150,000 $ 120,000 Credit Sales 300,000 400,000 280,000 Total Sales $ 460,000 $ 550,000 $ 400,000 Management estimates that 5 % of credit sales are not collectible . Of the credit sales that are collectible , 60 % are collected in the month of