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Question 11 (3 points) Listen Major Industries produced 192,000 units in 90,000 direct labor hours. Production for the period was estimated at 198,000 units and 99,000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at 1) 96,000 hours and 99,000 hours. 2) 99,000 hours and 90,000 hours. 3) 96,000 hours and 90,000 hours. 4) 90,000 hours and 90,000 hours. Previous Page Next Page Page 6 of 9 Question 12 (3 points) Listen On the basis of the budget reports, 1) Management analyzes differences between actual and planned results. 2) Management may take corrective action. 3) Management may modify the future plans. 2 4) All of these answers are correct. Question 13 (3 points) Listen Which one of the following items would never appear on a cash budget? 1) Office salaries expense 2) Interest expenses 3) Depreciation expense 4) Travel expense Previous Page Next Page Page 7 of 9 Question 14 (3 points) Listen The cash budget reflects 1) all revenues and all expenses for a period. 2) expected cash receipts and cash disbursements from all sources. 3) all the items that appear on a budgeted income statement. 4) all the items that appear on a budgeted balance sheet. Question 15 (3 points) Listen In a production budget, total required production units are the budgeted sales units plus 1) beginning finished goods units. 2) desired ending finished goods units. 3) desired ending finished goods units plus beginning finished goods units. 4) desired ending finished goods units minus beginning finished goods units