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production in inventory at the end of a month. How many wheels
should JacKue purchase during January?
• Question 21 Which of the following is a characteristic of a flexible
budget?
• Question 22 All else being equal, the breakeven point in units will be
higher if
• Question 23 The ratio of fixed costs to the contribution margin is
• Question 24 Oslo Co.’s industrial photo-finishing division, Rho,
incurred the following costs and expenses in 2012:
• Question 25 Crisper, Inc. plans to sell 80,000 bags of potato chips in
June, and each of these bags requires five potatoes. Pertinent data
includes:
• Question 26 At annual sales of $900,000, the Ebo product has the
following unit sales price and costs:
• Question 27 Which of the following is a disadvantage of
participative budgeting?
• Question 28 For the current period production levels, Woodwork Co.
budgeted 11,000 board feet of production and purchased 15,000 board
feet. The material cost was budgeted at $7 per foot. The actual cost for
the period was $8.50 per foot. What was Woodwork’s material price
variance for the period?
• Question 29 In the past, four direct labor hours were required to
produce each unit of product Y. Material costs were $200 per unit, the
direct labor rate was $20 per hour, and factory overhead was 3 times
direct labor cost. In budgeting for next year, management is planning
to outsource some manufacturing activities and to further automate
others. Management estimates that these plans will reduce labor hours
by 25%, increase the factory overhead rate to 3.6 times direct labor
costs, and increase material costs by $30 per unit. Management plans
to manufacture 10,000 units. What amount should management
budget for cost of goods manufactured?
• Question 30 A company produces widgets with budgeted standard
direct materials of 2 pounds per widget at $5 per pound. Standard
direct labor was budgeted at 0.5 hour per widget at $15 per hour. The