S. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? A) Property taxes B) Depreciation C Office salaries D). Freight-out 6. The starting point in preparing a master budget is the preparation of the A) personnel budget. B) production budget C) sales budget. D) purchasing budget. 7. At January 1, 2010, Ceatric, Inc. has beginning inventory of 2,000 surfboards.Ceatrie estimates it will sell 5,000 units during the first quarter of 2010 with a 12% increase in sales each quarter Ceatric's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for 5150. How much is budgeted sales revenue for the third quarter of 2010? A) $940,800 B) $225,000 C) $6,272 D) $975,000 8. Secret Prizes, Ine. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sec Prizes has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for Marc A) $3,000 B) $2,850 C) $1,500 D) S1,425 . What s the orpration seguencing of the tolowingds 2 Sales Budgt 3. Selling and Administraive Budget 4 Budgeted ncome Scatement A) 23,14 3 24.13 D) 2341- L A major clement in budgetary contral is A) tie camparison of actual results with planned objectives. aggroval of the budget by the stocikholders. 2 Tog management's reaction to a difference between budgeted and actual sales often degends oa A) whether management anticipated the difference. B) the materiality of the difference C) the personality of the top maragers. D) whether the difference is favorable or unfavorable. Which one of the following would be the same total amouat on a flexible budget and a staic budget if the activity level is different for the two types of budgets? A) Direct labor cost B) Fiued manufacturing overhesd C) Direct materials cost D) Variable manufacturing overhead 13