QUESTION 3

Scheduling different levels of production each month to maintain a relatively stable inventory could lead to all but:

idle production capacity in some months.

leasing additional warehouse space to store finished goods.

running a second or third shift during some months.

inefficiencies from hiring inexperienced workers to meet heavy production schedules.

QUESTION 4

When preparing the flexible budget for factory overhead, variable costs may include all but the following:

		insurance
		shop supplies
		electricity to run the machines
		repair costs