2. McCabe production Co."s static budget plan at 8,000 systems of production contains $40,000 for direct labor and also $4,000 for electrical power. Complete fixed costs are $23,000. In ~ 9,000 devices of production, a flexible budget would show:

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

B) variable costs of $44,000 and also $23,000 of solved costs

C) variable expenses of $49,500 and $23,000 of fixed costs

D) variable and also fixed costs 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 supplied to prepare i m sorry of the complying with budgets?

A) operating expenses

B) direct materials purchases, direct labor cost, factory overhead cost

C) Sales in dollars

D) Sales in units

4. Principal components of a master spending plan include i beg your pardon of the following?

A) manufacturing budget

B) Sales budget

C) funding expenditures budget

D) all of the above

5. The very first budget customarily all set as part of one entity"s master spending plan is the:

A) manufacturing budget

B) cash budget

C) sales budget

D) straight materials purchases

6. Pipe Fitters Co. Has beginning inventory the 10,000 units. Sales are expected to it is in 30,000 units. The required finishing inventory is 8,000 units. How countless units should be produced?

A) 28,000

B) 30,000

C) 32,000

D) 48,000

7. Preparation of a cash budget plan takes all yet which that the following into consideration?

A) Depreciation expense

B) Cash got from customers

C) perform payments

D) payment to suppliers

8. Calculating addressed unit manufacturing prices results in

A) continuous unit costs as production increases

B) consistent unit prices as manufacturing decreases

C) increasing unit costs as production increases

D) increasing unit costs as manufacturing decreases

9. I m sorry of the adhering to is not a benefit of budgeting?

A) A budget plan 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 details goals and objectives.

C) A spending plan establishes benchmarks to measure success.

D) A budget guarantees a net revenue for the company.

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10. Recognize the expected annual sales for the sales budget. Units sell at $8 each. Approximated sales are as follows: very first quarter 10,000 units, 2nd quarter 15,000 units, third quarter 20,000 units and fourth 4 minutes 1 30,000 units.