The amount of cash paid out for overhead each period does not equal the total overhead costs incurred during the period because: overhead expenses rarely require cash payments. overhead expenses only require cash payments for indirect materials. depreciation expense does not require a cash payment. Which of the following best describes the selling and administrative budget? A series of budget schedules outlining the organization's plans for the upcoming period. An estimate of cash expenditures for long-term assets. An estimate of all operating costs other than production costs. A budget that is bases on sales projections plus an estimate of desired ending finished goods inventory less beginning finished goods inventory None of the answer choices is correct. When preparing a production budget, the desired ending finished goods inventory for the first period. not used in this budget. always less than the beginning finished goods inventory for the second period. None of the answer choices is correct. Freeman Company plans to sell 65,000 units in June and 72, 500 units in July. Freeman's policy is to keep 30% of the next month's sales in ending inventory. If the ending inventory in May was consistent with this policy, how many units should be produced in June? 86, 750 units 106, 250 units 67, 250 units 62, 750 units