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problem1: Budgeting supports the planning process by encouraging all of the following activities EXCEPT ________.

[A]   Increasing the motivation of managers and employees by providing agreed-upon expectations

[B]    Requiring all organizational units to establish their goals for the upcoming period

[C]    Directing and coordinating operations during the period

[D]   Improving overall decision making by considering all viewpoints, options, and cost reduction possibilities

problem 2: McCabe Manufacturing Co.'s static budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible budget would show ________.

[A]    Variable costs of USD 49,500 and USD 23,000 of fixed costs

[B]   Variable and fixed costs totaling $75,375

[C]    Variable costs of USD 49,500 and USD 25,875 of fixed costs

[D]   Variable costs of $44,000 and $23,000 of fixed costs

problem3: At the beginning of the period, the Cutting Department budgeted direct labor of $135,000, direct material of 165,000 dollars & fixed factory overhead of 12,000 dollars for 7,500 hours of production. The department actually completed 10,000 hours of production. find out the appropriate total budget for the department, suppose it uses flexible budgeting?

[A]    $367,000

[B]   $357,000

[C]    $416,000

[D]   $412,000

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916587

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