Question

plz what the answer from 8 to 11

ministrative expense budo The sales budget and administrative expense 395 160 per month, which includes 8) Route nous ne bases expense budo u penses 1320 shows 7.800 units are planned to be sold in Apr The Unit The budgeted foed sling and admin 100 per mon represents and ministrative depreciation of 39 per month The remainder of the food and cash flows. The cash disbursements for selling and administrative expenses on the April semina administrative expense budget should be a) 5 85.800 . b) $24.900 e) $120, 120 d) $110.750 9) Which of the following statements is true? a) The usual starting point in budgeting is to make a forecast of cash receipts and cash disbursements b) Manufacturing firms use a production budget merchandising firms use a merchandise purchases budget instead c) Self-imposed budgets are those that are prepared by top management and then assigned to other managers within the organization d) When using the self-imposed budget approach it is generally best for top management to accept all budget estimates without question in order to minimize adverse behavioral responses from employees 10) The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4.400 direct labor-hours will be required in October. The variable overhead rate is $8.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $86,680 per month, which includes depreciation of $16,280. All other faced manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for October should be: a) $28.60 b) $19.70 c) $24.90 d) $ 8.90 Thiel Inc. is working on its cash budget for October. The budgeted beginning cash balance is $35,0 Budgeted cash receipts total $166,000 and budgeted cash disbursements total $162,000. The desired en cash balance is $50,000. The excess (deficiency) of cash available over disbursements for October will be a) $ 31,000 b) $ 4,000 c) $ 39,000 d) $201,000

Answer 1

8. The answer is option d $110,760

a. Budgeted sales units = 7,800 units

b. Variable selling and administrative expense per unit = $3.20 per unit

c. Variable selling and administrative expense = 7,800 units * $3.20 = $24,960

d. Fixed selling and administrative expense = $95,160

e. Depreciation expense included in fixed selling and administrative expense = $9,360

f. Cash outflow of fixed selling and administrative expense = $95,160 - $9,360 = $85,800

g. Total cash disbursement of selling and administrative expense (c + f) = $24,960 + $85,800 = $110,760

9. The correct answer is option d

When using a self imposed budget approach, it is generally best for top management to accept all budget estimates without question in order to minimize adverse behavioral responses from employees.

In self imposed budgets, individuals at all levels of the organization will be viewed as members of the team whose judgments are valued by top management.

10. The correct answer is option b $19.70

Predetermined overhead rate = Budgeted fixed manufacturing overhead / Budgeted direct labor hours

a. Budgeted fixed manufacturing overhead = $86,680

b. Budgeted direct labor hours = 4,400 direct labor hours

c. Predetermined overhead rate (a/b) = $86,680 / 4,400 = $19.70 per hour

11. The correct answer is option c $39,000

Cash budget for the month of October:

$

a. Opening cash balance 35,000

b. Add: Cash receipts 166,000

c. Less: Cash disbursements 162,000

d. Cash balance (a+b-c) 39,000

Therefore excess of cash balance over disbursement for October will be $39,000