26) Sekuterski Air uses two measures of activity, flights and passengers, in the cost formulas in its 5.700 per month budgets and performance reports. The cost formula for plane operating costs is $4 plus $2,892 per flight plus $4 per passenger. The company expected 8i nlights and 283 passengers, but the actual activity was so flights and 282 passengers. cost for plane operating costs in November was $286,360. The plane operating budget for November would be closest to: its activity in November to be The actual costs in the flexible C) $277,614 D) $286,360 A) $281,084 B) $278,188 27) Which of the following is NOT an objective of the budgeting process? A) To uncover potential bottlenecks before they occur. B) To ensure that the company continues to grow. C) To provide a means o f allocating resources to those parts of the organization where they can be used most effectively. D) To communicate management's plans throughout the entire organization. 8) Fab Manufacturing Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales at Fab (in units) for the next three months are as follows October November December 25,000 31,000 28,000 udgeted unit sales Fab likes to maintain a finished goods inventory equal to 30% of thenext month's estimated sales. How many mugs should Fab plan on producing during the month of November? B) 25,900 mugs C) 26,800 mugs D) 23,200 mugs A) 34,300 mugs 29) A static planning budget is: A) a budget that ignores inflation. B) used when the mix of products does not change. C) a budget for a single level of activity. D) used only for fixed costs. 30) Cubie Corporation has provided the following data concerning its only product: Selling price Current sales Break-even sales 100 10,600 9,540 per unit units unit What is the margin of safety in dollars? B) $106,000 A) $1,060,000 C) $706,667 D) $954,000