1. By definition, ___________ costs are not determined by sales volume.

Select one:

Estimated

Total

Variable

Fixed

2. What might be unfavourable flexible-budget variance for variable costs the result of?

Select one:

Using more input quantities than were budgeted

Selling output at a higher selling price than budgeted

Both A and B are correct.

Paying higher prices for inputs than were budgeted

3. Sunshine Coast Corporation currently produces sun hats in an automated process. Expected production per month is 20 000 units, direct material costs are $3.00 per unit, and manufacturing overhead costs are $46 000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 10 000 and 20 000 units, respectively?

Select one:

None of these answers are correct.

$53 000; $106 000

$76 000; $106 000

$53 000; $83 000

4. Ballarat Box Corporation currently produces cardboard boxes in an automated process. Expected production per month is 20 000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $9000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 10 000 and 20 000 units, respectively?

Select one:

$10 500; $21 000

$15 000; $21 000

$10 500; $16 500

None of these answers are correct.