True or false: Service/Support department budgets are typically done before the Production Department's budget in order for the Production Department to adequately account for "direct" costs 3 True 6 False 9 12 Question 4 (3 points) A company makes fudge in a batch process, i.e. they prepare, mix and cook the ingredients in small batches, followed by a thorough cleanup of the equipment after each batch. For the month of July the company budgeted to make 20,000 lbs. in 200 batches; setup and cleanup costs regarding the batches were budgeted at $10,000 in total. Actual results for July were as follows: they made 24,000 lbs. in 300 batches; setup and cleanup costs regarding the batches cost $18,000 in total. From the above information, it can be said 15 18 Compared to budget, the company increased batch size, but unfortunately each batch cost too much money for setup/cleanup 21 Compared to budget, the company used too many batches for the actual volume produced, and each batch cost too much money for setup/cleanup 24 Compared to budget, the company used too many batches for the actual volume produced, and they saved on setup/cleanup costs 27 Compared to budget, the company improved its batch efficiency, but unfortunately each batch cost too much money for setup/cleanup