QUIZ NO. 3FUNCTIONAL AND ACTIVITY-BASED BUDGETING
NAME:
_____________________________________________________________
SCORE: ___________________
The following information has been gathered by the Budget
Director of the Kareton Company, another outfit managed by the
Masugid Company. The firm manufactures and sells only one
product.
Selling price per unit P5.00Expected unit sales - 75,000
units
Direct labor cost is P3.00 per hour1/4 an hour of DL = 1 unit of
product
Expected FG, beginning 42,000 unitsExpected FG, ending 50,000
units
Variable factory expenses - P33,200Fixed overhead - P99,600
Expected Raw materials, beginning - 5,000 gallonsExpected Raw
materials, ending 8,000 gallons
1 unit = 1 gallons of raw materialRaw Materials cost = P0.18 per
gallon during
Variable administrative and selling expenses - P1.00 per
unit
Factory overhead is applied to work-in-process on the basis of
direct labor hours.
In assisting the company to formulate the budget, you determined
the following budget parameters.1.Budgeted cost of raw materials to
be used in production is
a.P124,500b.P14,940c.P8,910d.P22,4102.Budgeted raw materials
purchases cost is a.P22,950b.P22,410c.P23,760d.P124,5003.Budgeted
direct labor is a.P20,750b.P83,000c.P62,250d.P33,2004.Variable
overhead cost per direct labor hour is
a.P1.60b.P4.80c.P1.80d.P6.405.Fixed overhead cost per direct labor
hour is a.P1.60b.P4.80c.P1.80d.P6.406.Budgeted contribution margin
is a.P5.00b.P1.80c.P3.40d.P2.587.Budgeted cost of goods sold (full
cost) is a.P76,500b.P96,500c.P196,500d.P304,0008.Net profit before
tax is a.P178,500b.P103,500c.P53,000d.P249,500
9. The following information was extracted from the May Cash
Budget of Hair Stars, a groom pad for men and women:Budget of Hair
Stars, a groom pad for men and women:
Excess of cash available over disbursementsP 800
Cash balance, May 110,100
Total cash disbursement for May32,500
The business can only borrow money in round figures of P1,000
amounts. If the business is required to maintain a minimum cash
balance of P10,000, how much money should be borrowed in May?
a.P9,200b.P10,000c.P22,000d.P23,000
10. Pera Inc. prepared the following sales budgetMonthCash
SalesCredit Sales
FebruaryP 80,000P 340,000
March100,000400,000
April90,000370,000
May120,000460,000
June110,000380,000
Collections are 40% in the month of sale, 45% in the month
following the sale, and 10% two months following the sale. The
remaining 5% is expected to be uncollectible. The companys total
budgeted collection from April to June amounts to
a.P1,090,250b.P1,325,500c.P1,468,500d.P1,397,500
