Use the following data to answer the next 2 questions: Alpha Corporation prepared a budget for a period in which 40,000 units were expected t be produced and sold. The budget is based on the following standard cost formulas: Revenue = $30X, where X = # units sold Manufacturing costs = $100,000+ $10.25X, where X = # units sold Selling & Admin costs = $300,000+ $2.00X, where X = # units sold Parts of a flexible budget performance report is shown below. Flexible Variance Actual Results Budget Units sold 35,000 Sales Revenue $1,000,000 Less Expenses: Cost of Goods Sold 458,750 471,500 S&A 370,000 370.000 Net Operating Income $ 158,500 46. What is the flexible budget amount for Sales Revenue? a $1,050,000 b. $1,200,000 C. $1,000,000 d. $1,100,000 47. What amount should be reported as the spending variance on Cost of Goods a. $ 52,350 U b. $ 52,350 F C. $ 12,750 U d. $ 12,750 F 40. When allocating a constrained resource to multiple products, management should first allocate resources to the product with: a. Highest contribution margin per unit of product b. Highest sales price per unit of product c. Highest contribution margin per unit of constrained resource d. Highest net income per unit 41. Poorly trained, low skill workers would probably have an unfavorable effect on a. materials quantity variance b. labor efficiency variance c fixed overhead spending variance d both a and b could be unfavorably affected by poorly trained workers, 42 Hampton Freeze's budgeted sales for next year are as follows: 14 Quarter $200.000 2nd Quarter $600,000 34 Quarter $800.000 4th Quarter $400,000 All sales are on account. The company expects to collect 70% in the quarter of the sale and 30% in the quarter following sales What is the amount of budgeted cash collections for the 2nd quarter? a $420,000 b. $480.000 c. $600,000 d. $740,000 43. When the number of units produced is greater than the number of units sold, absorption costing net operating income will be variable costing net operating income. a. Less than b. Greater than c. Equal to 44. When faced with an add/drop decision, management should focus on product line: a. Net income after allocation of common fixed costs b. Segment margin C. Contribution margin before direct fixed costs d. Contribution margin per unit of constrained resource