mundane gameH best ss 18. Worst Company has the following sales projection for Product W: April May June Sales (units) 120 150 140 The company's policy is to have inventory on hand at the end of each month equal to 40% of the next month's expected unit sales. There were 50 units of Product Win the March ending inventory (Mar 31). Given this information, Worst Company's production of Product W for the month of April should be: A. 120 units B. 130 units C. 150 units D. 165 units 19. A static budget: A. should be compared to actual costs to assess how well costs were controlled. B. should be compared to a flexible budget to assess how well costs were controlled. C. is valid for only one level of activity. D. represents the best way to set spending targets for managers. 20. Which of the following comparisons best isolates the impact of a change in activity on performance? A. static planning budget and flexible budget B. static planning budget and actual results C. flexible budget and actual results D. master budget and static planning budget 21. Bates Motel is a bed and breakfast establishment in a converted 100-year-old mansion. The motel's guests appreciate its gourmet breakfasts, individually decorated rooms, and deluxe showers. The motel's overhead budget for the most recent month appears below Activity level..... 50 guests Variable Overhead costs: Supplies ...... $150 Laundry ........ $250 Fixed Overhead costs: $200 Utilities ...... Salaries & wages . $4,000 Depreciation ..... $2.300 Total V & F Overhead cost. ......... $6,900 The Inn's variable overhead costs are driven by the number of guests. What would be the total flexible budget overhead cost for a month if the activity level is 57 quests? A. $6,956. B. $6,556 C. $6,900. D. $6,944. 5 | Page