For the month of June, Beeman Corp. estimated sales revenue at $600,000.

• Beeman pays sales commissions that are 4% of sales revenue.

• The sales manager's salary is $285,000.

• Additional estimated selling expenses that total 1% of sales revenue

• Miscellaneous selling expenses are $15,000.

How much are budgeted selling expenses for the month of July, if Beeman estimates sales revenues to be $540,000?

$327,000

$42,000

$330,000

$27,000

2-) Pinewood Department Store reported the following information for 2020:

October November December

Budgeted sales $1,300,000 $1,600,000 $1,900,000

• All sales are on credit.

• Customer amounts on account are collected 40% in the month of sale and 60% in the following month.

How much cash will Pinewood receive in November?

$1,300,000

$780,000

$1,420,000...

$1,600,000

3-) It costs Hanson, Inc. $18 per unit to produce part T5. During 2020, it has increased to $21 per unit. In 2020, Waugh Company has offered to provide Part T5 for $16 per unit to Hanson. As it pertains to the make-or-buy decision in 2020, which statement is true?

Net relevant costs are $2 per unit.

Differential costs are $5 per unit.

Incremental costs are $2 per unit.

Incremental revenues are $3 per unit.

4-)

A static budget is appropriate in evaluating a manager's performance if

actual activity is less than the master budget activity.

the company prepares reports on an annual basis.

the company is a not-for-profit organization.

actual activity equals the master budget activity.