Question : 61. A variant of fiscal-year budgeting whereby a twelve-month projection into : 1246893

61. A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed: 
A. flexible budgeting
B. continuous budgeting
C. zero-based budgeting
D. master budgeting

62. Scott Manufacturing Co.’s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 units of production, a flexible budget would show: 
A. variable costs of $52,800 and $27,600 of fixed costs
B. variable costs of $44,000 and $23,000 of fixed costs
C. variable costs of $52,800 and $23,000 of fixed costs
D. variable and fixed costs totaling $67,000

63. Bob and Sons’ static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show: 
A. the same cost structure in total
B. direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $18,000
C. total variable costs of $136,800
D. direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000

64. A disadvantage of static budgets is that they: 
A. start with a clean slate
B. cannot be used by service companies
C. do not show possible changes in underlying activity levels
D. show the expected results of a responsibility center for several levels of activity

65. A series of budgets for varying rates of activity is termed a(n): 
A. flexible budget
B. variable budget
C. master budget
D. activity budget

66. For January, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager’s salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of January are: 
A. $157,100
B. $240,600
C. $183,750
D. $182,100

67. For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager’s salary is $96,000; advertising expenses are $80,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of February are: 
A. $185,650
B. $189,500
C. $196,100
D. $230,600

68. For March, sales revenue is $1,000,000; sales commissions are 4% of sales; the sales manager’s salary is $80,000; advertising expenses are $75,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,100 plus 1% of sales. Total selling expenses for the month of March are: 
A. $217,100
B. $187,550
C. $194,100
D. $192,100

69. Cameron Manufacturing Co.’s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $25,000. At 8,000 units of production, a flexible budget would show: 
A. variable costs of $64,000 and $25,875 of fixed costs
B. variable costs of $64,000 and $25,000 of fixed costs
C. variable costs of $72,000 and $25,000 of fixed costs
D. variable and fixed costs totaling $112,000

70. Tanya Inc.’s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show: 
A. the same cost structure in total
B. direct materials of $72,000, direct labor of $52,800, utilities of $5,000, and supervisor salaries of $15,000
C. total variable costs of $148,800
D. direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000