.The difference between the revenue or cost projection that a person provides, and a realistic estimate of the revenue or cost is called:

1. Passing the buck
2. Budgetary slack
3. False budgeting
4. Participative budgeting
5. Resource allocation processing

8.Wu production company which uses activity based budgeting is in the process of preparing a manufacturing overhead budget. Which of the following would Likely appear on the budget?

1. Batch levels costs: production set up
2. Unit level costs: depreciation
3. Unit level costs: maintenance
4. product level costs: Insurance and property taxes
5. Facility and general operations level costs: Indirect material

9.The sales volume variance equals:

1. (Actual sales volume budgeted sales volume) x actual sales price
2. (Actual sales volume budgeted sales volume) x actual contribution margin
3. (Actual sales volume budgeted sales volume) x budgeted sales volume
4. (Actual sales volume budgeted sales volume) x budgeted sales price
5. (Actual sales volume budgeted sales volume) x fixed overhead volume variance

10.Cansiter industries uses labor hours to apply variable overhead to production. If the companys workers were very inefficient during the period, which of the following statements would be true about the variable overhead efficiency variance?

1. The variance would be favorable
2. The variance would be unfavorable
3. The nature of the variance (favorable or unfavorable) would be unknown based on the facts presented
4. The variance would be the same amount as the labor efficiency variance
5. None of the answers is correct

11.Solution enterprises incurred $828,000 of fixed overhead during the period. During that same period the company applied $845,000 of fixed overhead to production and reported an unfavorable budget of $41,000. How much was Solutions budgeted fixed overhead?

1. $787k
2. $804k
3. $869k
4. $886k
5. None of the answers is correct