correct the probsenn. D) Management will investigate this $2 million favorable variance to ensure that the cost aly do not reflect skimping on customer service 12) The store manager for the Dick's Sporting Goods location in Columbus, Ohio, is in charge of a(n)1 B) profit center D) revenue center A) cost center C) investment center 13) Bruner Stores wants to have 500 shovels in ending inventory on December 31. Budgeted sales for December are 1,950 shovels. The November 30 inventory was 320 shovels. How many shovels should Benson Stores purchase for December? D) 2,770 C) 2,450 B) 1,770 A) 2,130 1 14) Martin Company sells a certain product for $15 per unit. The beginning inventory is 40,000 units, and the desired ending inventory is 32,000 units. If budgeted production (or purchases) is 100,000 units, what is the forecasted sales revenue from the product? D) $1,500,000 C) $1,620,000 A) $1,380,000 B) $1,600,000 15) Crafty Carpentry Company produces and sells a shelf for $25 each. The beginning inventory is 2,000 shelves, and the desired ending inventory is 2,200 shelves. If budgeted production is 12,500 shelves, what is the forecasted sales revenue from the shelves? D) $417,500 A) $207,500 C) $307,500 B) $317,500 16) Hatfield Company has budgeted the following credit sales during the last four months of the year: 1 September, $13,000; October, $19,000; November $20,000; December, $24,000. Experience has shown that payment for the credit sales is received as follows: 10% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 10% uncollectible. How much cash can Hatfield Company expect to collect in November as a result of credit sales? A) $14,000 B) $16,000 C) $11,400 D) $13,400 17) Summer Nights sells bottles of bug spray for $6.50 each. Variable costs are $3.00 per bottle, while 1 fixed costs are $44,000 per month for volumes up to 30,000 bottles of spray and $54,000 per month for volumes above 30,000 bottles of spray. The flexible budget would reflect monthly operating income for 19,000 bottles of lotion and 24,000 bottles of lotion of what dollar amounts? A) $12,500 and $102,000, respectively C) $123,500 and $156,000, respectively B) $22,500 and $40,000, respectively D) $79,500 and $40,000, respectively 18) A lamp store purchased $3,800 of lamps in September. The store had $1,600 of lamps on hand at the 1 beginning of September, and ex part of anticipated October sales. What is the budgeted cost of goods sold for September? pected to have $1,300 of lamps at the end of September to cover A) $6,700 B) $5,400 C) $3,500 D) $4,100