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An activity is 26 Multiple Choice 01:52:38 eBook a type of duration driver used in activity-based costing systems. an allocation base in an activity-based costing system. an event that causes the consumption of overhead resources, a "bucket" in which costs are accumulated in an activity-based costing system. 27 Number of units produced Direct labor hours per unit Number of setups Hours per setup Number of material moves Number of products Product 1,000 units 2 hours 30 setups 5 hours 600 moves 1 product Products 7,000 units 2 hours 50 setups 3 hours 400 moves 1 product Product c 2,000 units 2 hours 20 setups 5 hours 200 moves 1 product 8 015224 Book Using the activity-based costing approach, what percent of the company's total Machine Setup activity cost would be allocated to Product C? Multiple Choice 48% 38% O 35% Which of the following statements is false? 29 Multiple Choice 8 01:51:42 eBook Budgets force managers to think about and plan for the future. Budgets define goals and objectives that con serve as benchmarks for evaluating subsequent performance Budgets enable each department to function independently from other departments. Budgets communicate management's plans throughout the organization, 30 Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $33,000 and $49.000, respectively. It also expects credit sales of $59,000 and $69.000, respectively. The company expects to collect 35% of its credit sales in the month of the sale, 55% in the following month and 10% is deemed uncollectible. What amount of cash collections would appear in the company's cash budget for the first month Multiple Choice $53.050 520 650 5660 000 31 Cash balance, May 1 Cash collections from customers Cash disbursements for merchandise purchases Cash disbursements for selling and administrative expenses Depreciation included in the selling and administrative expense budget $20,000 SBO,000 $35,000 $40,000 $5,000 8 015120 Based solely on the information provided, what is the company's excess (deficiency of cash available over disbursements at the end of May? Book Multiple Choice $30.000 $15,000 $20.000 $25.000 32 Assume a company's sales budget for April and May is 48,000 units and 50,000 units, respectively. Its production budget for the same two months is 45.000 units and 46,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains row materials inventory equal to 20% of the following months production needs Also assume the company pays $2.85 per pound of raw material. It always pays for 50% of its raw material purchases in the month of purchase and the remainder in the following month. The accounts payable balance on March 31is $148,000. How much cash disbursements for raw materials purchases would be shown in the company's cash budget for April? 3100 Multiple Choice $340230 O $346.230 $340,230 5349.230