I. A static budget is a a budget which the entire amount on each line must be fully justified and reviewed. b budget which is based on last year's budgeted line-item amounts with adjustments for expected changes. d budget which changes with volume 2. The purpose of a flexible budget is to c budget which does not vary with volume. a. remove items from performance reports that are not controllable by managers. that are reported. activity of the period. budget is prepared. b. pmit managers to reduce the number of unfavorable variances c. update the static planning budget to reflect the actual level of d reduce the amount of conflict between departments when the master Lynch Corporation currently produces cardboard boxes in an automated process. Expected production per month is 20,000 units. The required direct materials costs S0.45 per unit. Manufacturing overhead costs are $18,000 per month. Manufacturing overhead is allocated based on units of production. What is the flexible budget for 20,000 and 10,000 units, respectively? a. S19,500; $15,000 b $27,000; $22,500 c. $30,000; $25,500 d. S33,000; $28,500 e. None of the above 4 Budgeted production needs are determined by: a. adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total. b dding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. c.adding budgeted sales in units to the desired ending inventory in units. d. units. deducting the beginning inventory in units from budgeted sales in