Miracle Enterprises sells electronics in retail outlets and on the Internet It uses activity based budgeting in the preparation of its selling, general, and administrative expense budget Which of the following costs would the company likely classify as a unit level expense on its budget a Media advertising b Administrative salaries c Salary of the sales manager employed at store no 23 d Salaries of web site maintenance personnel e Retail outlet sales commissions Wu Production Company, which uses activity based budgeting, is in the process of preparing a manufacturing overhead budget Which of the following would likely appear on that budget a Product level costs Insurance and property taxes b Facility and general operations level costs Indirect material c Batch level costs Production setup d Unit level costs Maintenance e Unit level costs Depreciation A company that uses activity based budgeting performs the following 1Plans activities for the budget period 2Forecasts the demand for products and services as well as the customers to be served 3Budgets the resources necessary to carry out activities Which of the following denotes the proper order of the preceding activities a 3 2 1 b 2 3 1 c 2 1 3 d 1 2 3 e 3 1 2 Solution Enterprises incurred $828,000 of fixed overhead during the period During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000 How much was Solutions budgeted fixed overhead a Not enough information to judge b $869,000 c $804,000 d $787,000 e $886,000 A flexible budget a gives management flexibility in terms of meeting budget goals b is both preferred over a static budget in the evaluation of performance and can be used to compare actual and budgeted costs at various levels of activity c parallels a static budget with respect to format and advantages of use d is preferred over a static budget in the evaluation of performance e can be used to compare actual and budgeted costs at various levels of activity

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 01, 2024

Miracle Enterprises sells electronics in retail outlets and on the Internet. It uses activity-based budgeting in the preparation of its selling, general, and administrative expense

Miracle Enterprises sells electronics in retail outlets and on the Internet. It uses activity-based budgeting in the preparation of its selling, general, and administrative expense budget. Which of the following costs would the company likely classify as a unit-level expense on its budget a. Media advertising.

b. Administrative salaries

c. Salary of the sales manager employed at store no. 23.

d. Salaries of web-site maintenance personnel.

e. Retail outlet sales commissions.

Wu Production Company, which uses activity-based budgeting, is in the process of preparing a manufacturing overhead budget. Which of the following would likely appear on that budget?

a. Product-level costs: Insurance and property taxes.

b. Facility and general operations-level costs: Indirect material.

c. Batch-level costs: Production setup.

d. Unit-level costs: Maintenance.

e. Unit-level costs: Depreciation.

A company that uses activity-based budgeting performs the following: 1Plans activities for the budget period. 2Forecasts the demand for products and services as well as the customers to be served. 3Budgets the resources necessary to carry out activities. Which of the following denotes the proper order of the preceding activities a. 3-2-1. b. 2-3-1. c. 2-1-3. d. 1-2-3. e. 3-1-2.
Solution Enterprises incurred $828,000 of fixed overhead during the period. During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000. How much was Solutions budgeted fixed overhead?

a. Not enough information to judge.

b. $869,000.

c. $804,000.

d. $787,000.

e. $886,000.

A flexible budget:

a. gives management flexibility in terms of meeting budget goals.

b. is both preferred over a static budget in the evaluation of performance and can be used to compare actual and budgeted costs at various levels of activity.

c. parallels a static budget with respect to format and advantages of use.

d. is preferred over a static budget in the evaluation of performance.

e. can be used to compare actual and budgeted costs at various levels of activity.