1. On a piece of scrap paper prepare a flexible budget for 5,000, 6,000, and 7,000 units of output.

Use the following data:

Variable costs: direct labor $4.00, direct materials $2.00, and overhead $3.00

Budgeted fixed overhead: $40,000.

Total budgeted cost for 7,000 units is

		$103,000
		some other number
		$94,000
		$85,000

2.

Which describes process costing?

		special orders
		small quantities of one of a kind items
		unique products
		homogeneous product

3.

On a piece of scrap paper prepare a flexible budget for 5,000, 6000, and 7000 units of output.

Use the following data:

Variable costs: direct labor $4.00, direct materials $2.00, and overhead $3.00

Budgeted fixed overhead: $40,000.

Budgeted variable costs for 5000 units are

		some other number
		$45,000
		$54,000
		$63,000