D Question 10 10 pts Management by exception e means that only unfavorable differences will be investigated. O causes managers to be buried under voluminous paperwork. means that material differences will be investigated. means that all differences will be investigated. 4 Previous Question 9 10 pts Another name for the static budget is master budget. overhead budget. flexible budget O permanent budget 1 Previoris Question 8 10 pts If costs are not responsive to changes in activity level, then these costs can be best described as o variable O fixed mixed O flexible Question 7 10 pts At 18,000 direct labor hours, the flexible budget for direct labor is $45,000. If $37,400 is incurred at 18,400 direct labor hours, the flexible budget report should show the following difference for direct labor: O $8,600 favorble O $600 favorable O $8,600 unfavorable $7,600 favorable O $600 unfavorable O $7.600 unfavorable Question 6 10 pts Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $290,000 fixed. If Stone had actual overhead costs of $321,000 for 21,000 units produced, what is the difference between actual and budgeted costs? O $32,000 favorable O $32.000 unfavorable O $17.000 unfavorable O $3,000 unfavorable O $3,000 favorable $17.000 favorable Question 5 10 pts In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $16,000 at normal capacity of 160,000 direct labor hours. If 150,000 direct labor hours are worked, flexible budget total for these costs is O $98,500 O $105,000 $88,000 O $83,500 Question 4 10 pts For June, Gold Corp. estimated sales revenue at $600,000. It pays sales commissions that are 4% of sales. The sales manager's salary is $85,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. How much are budgeted selling expenses for the month of July if sales are expected to be $440,000? $122,000 O $22,000 $130,000 O $327,000 Question 3 10 pts Shane Industries prepared a fixed budget of 60,000 direct labor hours, with estimated overhead costs of $300,000 for variable overhead and $180,000 for fixed overhead. Shane then prepared a flexible budget at 57,000 labor hours. How much is total overhead costs at this level of activity? O $480.000 O $456,000 O $465,000 O $375,000 $285,000 Question 2 10 pts U A department has budgeted monthly manufacturing overhead cost of $540,000 plus $3 per direct labor hour. If a flexible budget report reflects $1,440,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was 348,000 direct labor hours. 300,000 direct labor hours. O 528,000 direct labor hours. 168,000 direct labor hours. Question 1 10 pts Wye Manufacturing prepared a 2020 budget for 185,000 units of product. Actual production in 2020 was 195,000 units. To be most useful, what amounts should a performance report for this company compare? The actual results for 195,000 units with last year's actual results, The actual results for 195,000 units with the original budget for 185,000 units. The actual results for 185,000 units with a new budget for 185,000 units. The actual results for 195,000 units with a new budget for 195,000 units
