First

Second

Third

Fourth

Sales in Units

12,000

14,000

18,000

26,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 11,000 units. What should be the scheduled production for the third quarter?

a.17,500 units.

b.22,000 units.

c.18,500 units.

d.13,500 units.

1.Which of the following refers to standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times?

a.Ideal standards.

b.Normal standards.

c.Practical standards.

d.Budgeted standards.

2.A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?

a.The production manager.

b.The purchasing agent.

c.The engineering department.

d.Manufacturing overhead.

3.All other things being equal, which of the following is a consequence of an increase in a division's traceable fixed expenses?

a.The overall company operating income will remain the same.

b.The division's contribution margin ratio will decrease.

c.The division's segment margin will decrease.

d.The division's segment margin ratio will remain the same.