57) When determining the product costs for long-term planning A) the selling and distribution expenses should be ignored B) absorption costing is more appropriate Q the research and development cost of the product should be ignored D) variable costing is more appropriate produces 58) 58) Paradiso Company manufactures dolls that are sold to various distributors. The company at full capacity for six months each year to meet peak demand; the manufacturing facility operates at 80% of capacity for the other six months of the year. The company has provided the following data for the year: 500,000 units Sales price Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $30 per unit $15 | per unit $1,000,000 |per year $3 per unit Paradiso receives an offer to produce 5,000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price the company should accept for the order? A) $12 B) $18 $15 D) $30 59) When a company is preparing a budgeted statement of cash flows, the payments for selling and 59) administrative expenses can be obtained from the A) budgeted payments for purchases C) budgeted balance sheet B) cash budget D) sales budget 60) Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting? A) creating detailed budgets B) comparing actual performance to previously budgeted amounts C) implementing operational plans D) evaluating results of operations 61) Underallocated overhead occurs when . A) actual overhead costs are less than allocated overhead costs B) estimated overhead costs are greater than budgeted overhead costs estimated overhead costs are greater than actual overhead costs D) allocated overhead costs are less than actual overhead costs