2. McCabe manufacturing Co."s static budget plan at 8,000 units of production has $40,000 for direct labor and $4,000 for electric power. Full fixed prices are $23,000. At 9,000 devices of production, a flexible budget plan would show:

A) variable costs of $49,500 and also $25,875 of resolved costs

B) variable expenses of $44,000 and $23,000 of resolved costs

C) variable costs of $49,500 and $23,000 of addressed 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 manufacturing budgets are provided to prepare i beg your pardon of the complying with budgets?

A) operating expenses

B) straight materials purchases, direct labor cost, manufacturing facility overhead cost

C) Sales in dollars

D) Sales in units

4. Principal contents of a master budget plan include i beg your pardon of the following?

A) production budget

B) Sales budget

C) funding expenditures budget

D) every one of the above

5. The an initial budget customarily ready as part of one entity"s master budget is the:

A) production budget

B) cash budget

C) sales budget

D) direct materials purchases

6. Pipe Fitters Co. Has beginning inventory the 10,000 units. Sales space expected to be 30,000 units. The required ending inventory is 8,000 units. How countless units have to be produced?

A) 28,000

B) 30,000

C) 32,000

D) 48,000

7. Preparation of a cash budget takes all yet which of the adhering to 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) consistent unit expenses as production increases

B) continuous unit expenses as production decreases

C) boosting unit expenses as manufacturing increases

D) boosting unit prices as manufacturing decreases

9. Which of the following is not a benefit of budgeting?

A) A spending plan communicates meant outcomes.

You are watching: Production budgets are used to prepare which of the following budgets?

B) A budget assists in creating specific goals and also objectives.

C) A budget establishes benchmarks to measure success.

D) A spending plan guarantees a net income for the company.

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10. Determine the expected annual sales for the sales budget. Units offer at $8 each. Estimated sales are as follows: very first quarter 10,000 units, second quarter 15,000 units, third quarter 20,000 units and fourth 4 minutes 1 30,000 units.