TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) A budget is a quantitative expression for a set time period of a proposed future plan of action by management. 1) _______ 2) A budget is limited in that it can only cover financial aspects of plans. 2) _______ 3) The master budget embraces the impact of both operating decisions and financing decisions as related to acquisitions and uses of scarce resources. 3) _______ 4) Budgeted financial statements are also referred to as pro forma statements. 4) _______ 5) Budgeting is done in place […]

  61) Assume that you are working on a normal job costing system similar to the one shown in exhibit 4-5. One of the junior accountants has uncovered errors in that the following amounts were mistakenly omitted and not recorded.   Direct labour hours             1,000 Direct materials cost         $12,000 Marketing costs               $17,000 Administration costs           $ 9,000   Note: direct labour rate is $47 per hour   What amount should be added to work-in-process control? 61) ______ A) $76,000 […]

  51) What is the budgeted direct-cost rate per hour for professional partner labour? 51) ______ A) $38.00 per hour B) $46.00 per hour C) $50.00 per hour D) $57.63 per hour E) $44.50 per hour 52) What is the budgeted direct-cost rate for dental assistant labour? 52) ______ A) $11.250 per hour B) $9.125 per hour C) $16.125 per hour D) $17.875 per hour E) $13.750 per hour 53) What is the budgeted direct-cost rate per hour for office staff? 53) ______ A) $6.125 per hour B) $9.625 per hour C) $11.250 per hour D) $6.875 per hour E) […]

  81) _____________ 82) Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold. The company used a budgeted indirect-cost rate for its manufacturing operations. The amount that was allocated ($435,000) to cost of goods sold was different from the actual amount incurred ($425,000).   Ending balances in the relevant accounts were:   Work-in-Process$ 40,000 Finished Goods80,000 Cost of Goods Sold 680,000   Required:   a.Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold. Be sure […]