2. McCabe manufacturing Co."s static spending plan at 8,000 systems of production has $40,000 for straight labor and also $4,000 for electric power. Complete fixed prices are $23,000. At 9,000 devices of production, a flexible budget plan would show:
A) variable prices of $49,500 and $25,875 of resolved costs
B) variable costs of $44,000 and also $23,000 of fixed costs
C) variable costs of $49,500 and also $23,000 of resolved costs
D) variable and also fixed expenses totaling $75,375
solution: 40000+4000 = 44000 / 8000 = 5.50 x 9000 = 49,500 variable, fixed expense is the same
3. The production budgets are used to prepare i beg your pardon of the complying with budgets?
A) operating expenses
B) straight materials purchases, straight labor cost, manufacturing facility overhead cost
C) Sales in dollars
D) Sales in units
4. Principal contents of a master spending plan include i beg your pardon of the following?
A) manufacturing budget
B) Sales budget
C) funding expenditures budget
D) every one of the above
5. The first budget customarily prepared as part of an entity"s master budget plan is the:
A) production budget
B) cash budget
C) sales budget
D) straight materials purchases
6. Pipe Fitters Co. Has beginning inventory the 10,000 units. Sales room expected to be 30,000 units. The required ending inventory is 8,000 units. How many units have to be produced?
7. Preparation of a cash spending plan takes all yet which that the complying with into consideration?
A) Depreciation expense
B) Cash obtained from customers
C) inventory payments
D) payment to suppliers
8. Calculating solved unit manufacturing expenses results in
A) constant unit expenses as manufacturing increases
B) constant unit expenses as production decreases
C) enhancing unit costs as manufacturing increases
D) increasing unit expenses as production decreases
9. Which of the adhering to is no a advantage of budgeting?
A) A budget communicates intended outcomes.
You are watching: The production budgets are used to prepare which of the following budgets?
B) A spending plan assists in creating particular goals and objectives.
C) A budget establishes benchmarks to measure success.
D) A budget plan guarantees a net income for the company.
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10. Determine the expected annual sales for the sales budget. Units sell at $8 each. Approximated sales room as follows: an initial quarter 10,000 units, 2nd quarter 15,000 units, 3rd quarter 20,000 units and also fourth 4 minutes 1 30,000 units.