Question 1 12.

5 pts
It is important that budgets be accepted by

department heads only.

supervisors only.
All of these answers are correct.
division managers only.

Question 5 12.5 pts
A company has budgeted sales for the upcoming quarter as follows:
January February March
Units 15,294 15,341 15,240

The ending finished goods inventory for each month equals 50% of next
month's sales in units .  How many units must be produced in February?
Round your answer to the nearest whole number.
Answer
February production = 15,341 + 7620- 7647 = 15,314

Question 6 12.5 pts
A company manufactures a product that is sold for $37.95 each.  Plant
capacity is 750,000 units annually, but normal volume is 500,000 units. 
Costs at a normal volume are given below.
Unit Cost
Direct Materials $9.70
Direct Labor $4.58
Variable Manufacturing
$11.55
Overhead
Fixed Costs $4.13
Selling and
Administrative Variable $2.22
Expense
A customer offered to purchase  50,000 units at $35.19 each to be
packaged in large cartons, not the normal individual product containers. It
will pick up the units in its own trucks.  Thus, variable selling and
administrative  expense per unit will decrease by 50%.  What is the extra
operating income this company will receive if they accept this order (Enter
your answer for ALL 50,000 units in the special order).  
Answer
Less:
Variable cost

1,759,500
Sales 50,000 units at $35.19

Unit Cost
Direct Materials $9.70 485,000
Direct Labor $4.58 229,000
 Manufacturing 577500
$11.55
Overhead
variable selling and 55,500
1.11
administrative  expense
Total 1,347,000
Profit 412,500

Question 17 12.5 pts
ABC Company makes blenders. 
ABC budgets that they will sell 1,129 blenders during the month of April at a price of
$58.58 per blender. 
Actual blenders sold during April were 1,014 blenders at a price of $56.96 per blender. 
What is the Sales Flexible Budget Variance for April? If the variance is unfavorable, use
a negative sign right before the number with no space in between.
Round your answer to two decimal places. Do not round any intermediate calculations.

Sales Flexible Budget Variance = 1,129*58.58 – 1,014 *56.96 = 66136.82 – 57757.44 =

8379.38 ADV