Question

Costs that can be influenced by management at a specific level of management are called:

a.noncontrollable costs.

b.controllable costs.

c.direct costs.

d.variable costs.

Laurie Inc.'s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $25,000. A flexible budget for 12,000 units of production would show

a.total variable costs of $159,800

b.the same cost structure in total

c.direct materials of $60,000, direct labor of $52,800, fixed utilities of $6,000, and supervisor salaries of $25,000

d.direct materials of $72,000, direct labor of $52,800, fixed utilities of $5,000, and supervisor salaries of $25,000

At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?

a.$378,000

b.$305,000

c.$350,000

d.$288,000

1. Calculator

   For April, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $98,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,100 plus half of 1% of sales. Total selling expenses for the month of April are

   a.$159,100

   b.$242,600

   c.$182,100

   d.$186,000

Answer 1

Thank you.

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