### Flexible Budget Variance – Final Test – Accounting & Finance

The key terms in these Accounting chapters include Flexible Budget Variance, Contribution Margin, Favorable Variance, Cowboy Ice Cream, Bad Debts, Quiz Packets, Final Test.

What was Cowboy Ice Cream’s flexible budget variance and was it favorable or unfavorable?

\$33,750; favorable

\$1,750; favorable

500; unfavorable

\$32,000; unfavorable

\$2,250; favorable

\$1,750; unfavorable

\$2,250; unfavorable

\$32,000; favorable

500; favorable

\$4,000; favorable

\$4,000; unfavorable

\$33,750; unfavorable

What is Cowboy Ice Cream’s expected contribution margin if their sales price is \$4 per bar?

13,150

What is Cowboy Ice Cream’s expected net income if their sales price is \$4.25 per bar?

6,937

What price would you recommend that Cowboy Ice Cream charge for the ice cream bars in order to maximize their profit?

\$3.75

\$4.25

\$4.00

A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that \$24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of \$675. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Correct

##### Explanation

What is Cowboy Ice Cream’s expected net income if their sales price is \$4.25 per bar?

6,937

What price would you recommend that Cowboy Ice Cream charge for the ice cream bars in order to maximize their profit?

\$3.75

\$4.25

\$4.00

How many of the following variances are unfavorable?

2

5

1

0

4

#### 3

6

On September 12, Vander Company sold merchandise in the amount of \$7,100 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is \$5,300. Vander uses the periodic inventory system and the gross method of accounting for sales. The journal entry or entries that Vander will make on September 12 is:

Correct

What was Cowboy Ice Cream’s flexible budget variance and was it favorable or unfavorable?

\$33,750; favorable

\$1,750; favorable

500; unfavorable

\$32,000; unfavorable

\$2,250; favorable

\$1,750; unfavorable

\$2,250; unfavorable

\$32,000; favorable

500; favorable

\$4,000; favorable

\$4,000; unfavorable

\$33,750; unfavorable

What is Cowboy Ice Cream’s expected contribution margin if their sales price is \$4 per bar?

13,150

What was Cowboy Ice Cream’s flexible budget variance and was it favorable or unfavorable?

\$33,750; favorable

\$1,750; favorable

500; unfavorable

\$32,000; unfavorable

\$2,250; favorable

\$1,750; unfavorable

\$2,250; unfavorable

\$32,000; favorable

500; favorable

\$4,000; favorable

\$4,000; unfavorable

\$33,750; unfavorable

What is Cowboy Ice Cream’s expected contribution margin if their sales price is \$4 per bar?

13,150

What is Cowboy Ice Cream’s expected net income if their sales price is \$4.25 per bar?

6,937

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