14. Herman Company manufactures baskets. It expects to sell 30,000 baskets in 2020. The company had enough beginning inventory of direct materials to produce 36.000 baskets. Beginning inventory of finished baskets totaled 3,000 with a target ending inventory of 3,750 baskets. The baskets sell for $6.00 and the company keeps no work-in-process inventory. Direct materials cost for each basket total $2.00, while direct labor is $1.00. Factory overhead is $.40 per basket what should be the amount of sales in the budgeted income statement? a. $162,000 b. $180,000 c. $117,000 d. $119,250 15. The type of budget that remains the same without respect to any operational or financial changes is called a. A balanced budget. b. A cost budget. c. A flexible budget. d. A static budget 16. Some financial variances show increases in operating income relative to a budgeted or allocated amount, and others show decreases in operating income. Respectively, these variances are: a. Budgeted, standard b. Favorable, unfavorable c. Standard, budgeted d. Unfavorable, favorable 17. Which of the following statements is TRUE? a. A favorable variance always benefits a company. 6. Managers attempt to maintain unfavorable variances. c. Favorable variances are typically not preferred by management. d. A favorable variance is not always beneficial for an organization. Use the information below to answer the following questions: Republican Company used the following data to evaluate their current operating system. The company sells 1 (one) banner for $20. The $20 selling price is also de budgeted selling price. Budgeted Actual Units sold 1,000,000 990,000 Variable Costs $6,000,000 $3,600,000 $5,000,000 $3,700,000 Fixed Costs