Question :
78. The primary difference between a fixed budget and a flexible : 1226970
78. The primary difference between a fixed budget and a flexible budget is that a fixed budget A. cannot be changed after the period begins, whereas flexible budget can be changed after the period begins.B. is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.C. includes only fixed costs, whereas a flexible budget includes only variable costs.D. is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.
79. At the beginning of the period, the Cutting Department budgeted direct labor of $155,000, direct material of $165,000 and fixed factory overhead of $15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting. A. $416,000B. $370,556C. $368,889D. $335,000
80. At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct material of $170,000 and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting. A. $288,000B. $305,000C. $350,000D. $378,000
81. The production budgets are used to prepare which of the following budgets? A. Operating expensesB. Direct materials purchases, direct labor cost, factory overhead costC. Sales in dollarsD. Sales in units
82. Principal components of a master budget include which of the following? A. Production budgetB. Sales budgetC. Capital expenditures budgetD. All of the above
83. The first budget customarily prepared as part of an entity’s master budget is the: A. production budgetB. cash budgetC. sales budgetD. direct materials purchases
84. Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2012. The estimated January 1, 2012, inventory is 6,500 units, and the desired December 31, 2012, inventory is 7,000 units. What is the budgeted production (in units) for 2012? A. 75,500B. 66,000C. 76,500D. 65,000
85. The budget that needs to be completed first when preparing the master budget is the: A. Production BudgetB. Sales BudgetC. Cash BudgetD. Capital Expenditures Budget
86. Which of the following budgets is not directly associated with the production budget? A. Direct materials purchases budgetB. Factory overhead cost budgetC. Capital Expenditures budgetD. Direct labor cost budget
87. Below is budgeted production and sales information for Flushing Company for the month of December:
Product XXX
Product ZZZ
Estimated beginning inventory
30,000 units
18,000 units
Desired ending inventory
34,000 units
17,000 units
Region I, anticipated sales
320,000 units
260,000 units
Region II, anticipated sales
180,000 units
140,000 units
The unit selling price for product XXX is $6 and for product ZZZ is $15. Budgeted sales for the month are: A. $2,040,000B. $4,680,000C. $6,692,000D. $9,000,000
