Question

sales volume changes 29 The practice of comparing a company with its prior performance or with best practices from other companies is called A) competitive analysis B) differentiation analysis benchmarking D) budgeting 30) Which of the following would not appear on the selling and administrative budget of Odell Company? A) Indirect Labor B) Rent Expense Salaries Expense D) Depreciation Expense 31 31) Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year Jan $500,000 Feb March $750,000 $1,000,000 Sales (20% cash) The company collects 70% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February A) 55-60,000 B) $690.000 $750,000 D) $370,000 32) 32) The flexible budget variance is the difference between the A) flexible budget and actual amounts due to differences in volumes B) flexible budget and static budget due to differences in fixed costs actual results and the expected results in the fledible budget for the actual units sold D) expected results in the flexible budget for the units expected to be sold and the static budget 3) Which of the following is a reason companies use standard costs? A) to ensure the accuracy of the financial records B) to share best practices with other companies to enhance customer loyalty D) to set sales prices of products and services 34) Devon Company has collected the following data for one of its products 34) Direct materials standard pounds si/lb.) Direct materials flexible budget variance unfavorable Actual direct materials used Actual units produced S3 per unit $11,500 101,000 pounds 18.000 units What is the direct materials efficiency variance? A) $18,000 U B) $47,000 U $18,000 F D) $47,000 F ORG 2nd PRE

Answer 1

29. Option c, benchmarking

30. Option a, indirect labor

31. Option b , 690,000

	Feb
Cash sales	150000	[750000*20%]
feb credit sales	420000	[750000*80%*70%]
Jan credit sales	120000	[500000*30%*80%]
Total collections	690000

32. Option c, actual results and the expected results in the flexible budget for the actual units sold

33. Option D, to set sales prices of products and services

34. Efficiency variance = (101000 - 18000* 3) * 1 = 47000

Option B, $47000U