nancial written statement of management's plans for the future, expressed in terms, is a a, gross profit report b. responsibility report c. budget d. performance report 7. A disadvantage of static budgets is that they a. are dependent on previous year's actual results b. cannot be used by service companies c. do not show possible changes in underlying activity levels d. show the expected results of a responsibility center for several levels of activity 18. Chelsa Manufacturing Co.'s static budget for 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $23,000. At 8,000 units of production, a flexible budget would show a. total variable costs of $64,000 and $28,000 of fixed costs b. total variable costs of $45,000 and $23,000 of fixed costs c. total variable costs of $72,000 and $23,000 of fixed costs d. total variable and fixed costs totaling $107,000 19. Motorcycle Manufacturers, Inc. projected sales of 78,000 units for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (in units) for the year? a. 78,500 units b. 70,000 units c. 77,500 units d. 70,500 units 20. Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 108,000 units, and desired ending inventory is 90,000 units. The quantities of direct materials expected to e used for each unit of finished product are given below Material A-0.50 lb. per unit @ $0.70 per pound Material B-1.00 lb. per unit @$1.70 per pound Material C 1.20 lb. per unit@$1.00 per pound The dollar amount of Material A used in production during the year is a. $217,700 b. $528,700 c. $311,000 d. $224,600 3