21. If the Cost of Goods Sold is less than the cost of goods manufactured, then a. Finished Goods Inventory increases during the period. b. Finished Goods Inventory decreases during the period. C. overhead was overapplied. d. overhead was underapplied. 22. Preparing a budget allows managers to a. plan for the future. b. reduce the need for unprepared responses to unexpected situations. c. assess whether a division's strategic direction is in line with corporate strategy. d. All of these answer choices are correct. 23. Which of the following budget approaches will produce a more accurate budget? a. Participative budgeting. b. Imposed budgeting. c. Responsibility budgeting. d. None of these answer choices are correct. 24. Which of the following is not a behavioral issue related to a top-down budgeting environment? a. Employees may feel that an imposed budget is unfair. b. Employees will have no motivation to attempt to meet the budget. c. Employees may engage in budgetary padding. d. The organization's resources may be wasted. 25. Which of the following is an advantage of ideal standards? a. Employees will be motivated. b. Employees will take pride in their work. c. Employee morale will be high. d. Workers operate at 100% efficiency. 26. The amounts to be included in the standard price of direct labor are generally determined by a. each employee's supervisor. b. the plant manager. c. the payroll department. d. the CFO. 27. ABC Corporation allocates overhead based on direct labor cost. Assume ABC expects to incur a total of $1,025,000 in overhead costs and $820,000 in direct labor costs. Actual osts incurred totaled $1,050,000 and actual direct labor costs totaled $800,100 ABC's predetermined overhead rate is closest to a. 125% of direct labor cost. b. 128% of direct labor cost. C. 98% of direct labor costs. d. 100% of direct labor costs. 28. Tanger Products plans to produce 10,000 units in January. Each unit requires 3 pounds of plastic, which costs $2 per pound. What standard material cost would the company use to plan for production? a. $2 b. $6 c. $3,333 d. $5,000 29. Which of the following use information from the selling and administrative expense budget? a. Manufacturing overhead budget and cash budget b. Budgeted income statement and cash budget C. Cash budget and budgeted balance sheet d. Production budget and budgeted income statement. 30. Mounce, Inc. produces and sells free-standing quilt frames. In budgeting for production needs, the company requires that 10% of the next month's sales be on hand at the end of each month. Budgeted sales of quilt frames over the next four months are: Budgeted unit sales September 25,000 October 32,000 November 56,000 December 48,000 Budgeted production for October is a. 26,650. b. 34,400. c. 35,100. d. 37,600