Page 15 of 38 Question 15 (2.5 points) At rere direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 15,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90.000. Fixed and variable costs may be expressed as: Page 3 $60,000 fixed plus $4 per direct labor hour variable. O $30,000 fixed plus $6 per direct labor hour variable. age 4: $30,000 fixed plus $4 per direct labor hour variable $60,000 fixed plus $2 per direct labor hour variable. Page 1 of 38 Question 16 (2.5 points) Assume that actual sales results exceed the planned results for the second quarter This favorable difference is greater than the unfavorable difference reported for the first quarter sales. Which of the following statements about the sales budget report on June 30 is true? The year-to-date results will show a favorable difference. The difference for the first quarter can be ignored. The sales report is not useful if it shows a favorable and unfavorable difference for the two quarters. The year-to-date results will show an unfavorable difference. Question 17 (2.5 points) Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 20X9 Budget at 2.500 units Actual Amounts at 2,800 units Direct materiais $65.000 $75.000 Direct labor 70.000 75.000 Fixed overhead 35.000 34 500 What is the state budget report difference for direct material? 10,000 favorable 2,200 favorable 2,200 unfavorable 10,000 unfavorable Page 18 of 38 Question 18 (2.5 points) Which of the following is an advantage of participative budgeting? It encourages budgetary slack. OIt tends to discourage goal congruence. O It fosters a sense of responsibility. O It fosters pseudoparticipation