14. Which of the following statements is false regarding task analysis? a. It examines the production process in detail. b. It uses actual historical data in the determination of standard costs. c. It emphasizes what it should cost to produce a product rather than historical costs. d. It may involve the use of engineers.

15. Task analysis: a. is used to determine the tasks that production employees should complete on a daily basis. b. emphasizes the historical costs of a product. c. is used to evaluate employee performance. d. is used to set standard costs.

16. A(n) ____ is attainable only when near-perfect conditions exist. a. static budget b. practical standard c. flexible budget d. ideal standard

17. In most companies, machines break down occasionally and employees are often less than perfect. Which type of standard acknowledges these characteristics when determining the standard cost of a product? a. Budgeted standard b. Ideal standard c. Practical standard d. Efficiency standard

18. Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 2,000 umbrellas. The company has prepared the following static budget for April: Sales revenue (2,000 units) $60,000 Variable costs: Direct materials 6,000 Direct labor 8,000 Overhead 2,500 Fixed costs 6,000 Net operating income $37,500 During April, Hathaway actually produced and sold 2,300 umbrellas. What should be Hathaway's net operating income in April based on a flexible budget? a. $37,500 b. $43,125 c. $44,025 d. $35,025

19. Hoppe Inc. manufactures widgets. Management has determined that each widget has a standard materials cost of $3.50 when 2.5 ounces of raw material at a cost of $1.40 per ounce are used. The static budget for the month of December showed an estimated production of 4,000 widgets in December. During December, 4,300 widgets were actually produced. The actual cost for each widget was $3.60 when 2.25 ounces of raw material at a cost of $1.60 per ounce were purchased and used. What should be the total direct materials cost according to Hoppe's flexible budget for December? a. $14,000 b. $15,480 c. $14,400 d. $15,050

20. Violetta Inc. manufactures plastic storage boxes. Management has determined that each medium-sized box has a standard materials cost of $1.20 when 4 pounds of raw material at a cost of $.30 per pound are used. The static budget for the month of March showed an estimated production of 15,000 boxes in March. During March, 17,000 boxes were actually produced. The actual cost for each box was $1.56 when 3.9 pounds of raw material at a cost of $.40 per pound were purchased and used. What should be the total direct materials cost according to Violetta's flexible budget for March? a. $20,400 b. $18,000 c. $23,400 d. $26,520