Question

1. Russell, Inc. has forecast purchases on account to be $315,000 in March, $372,000 in April, $424,000 in May, and $494,000 in June. Sixty five percent of purchases are paid for in the month of purchase, the remaining 35% are paid in the following month. What are budgeted cash payments for April?

Multiple Choice

• $352,050

• $259,050

• $385,050

• $126,050

2. Who would typically be responsible for the direct materials quantity variance?

Multiple Choice

• The chief financial officer

• The production manager

• The purchasing manager

• The human resources manager

3. ________ variances are calculated by comparing the master budget to the flexible budget, and ________ variances are calculated by comparing actual costs to the flexible budget (not the master budget).

Multiple Choice

• Volume; volume

• Volume; spending

• Spending; volume

• Spending; spending

Answer 1