Question 27 (1 point) Calculate total budgeted selling and administrative expense for quarter 2 a) $60,000 b) $55,000 c) $65,000 d) $70,000 Question 28 (1 point) Exeter Company has a materials standard of 1 pound per unit of output. Each pound has a standard price of $26 per pound. During July, Exeter paid $66,546 for 2,505 pounds, which it used to produce 2,385 units of product. What is the direct materials price variance? a) $1,416 unfavorable b) $1,740 unfavorable c) $2,116 favorable d) $2,020 unfavorable Budgets play an important communication role within organizations. They provide a mechanism for managers to share expectations and priorities for the future. a) True b) False One downside to participative budgeting is that managers may try to build a little extra cushion, or budgetary slack, into their budget. a) True b) False Which of the following statements is correct regarding the components of the master budget? a) The manufacturing overhead budget is used to create the production budget b) The cost of goods sold budget is used to create the selling and administrative expense budget. c) Operating budgets are used to create financial budgets d) The cash budget is used to create the capital budget 2uestion 47 (1 point) Budgets can also create a "use-it-or-lose-it" mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget period. a) True b) False