Macabre produced 20,000 squares Of shingles during October. How much is budgeted for total manufacturing costs in October? One disadvantage of a static budget is the following: (Choose 2) Variable costs are not adjusted for the actual sales volume. Individual fixed costs are not identified. Variances are not shown. The sales variance does not distinguish between the price variance and the volume variance. None of the answers are correct One disadvantage of a static budget is the following: (Choose 2) Variances are not shown.

Individual fixed costs are not identified. It assumes the actual sales activity will be the same as the budgeted activity. Variable costs are not adjusted for the actual sales volume. None of the answers are correct If costs do not change with changes in activity level, these costs can be best described as costs. A budget with only one level of activity is a budget. An advantage of a flexible budget is the following: (Choose 2) Total costs will remain the same regardless of the level of activity. Variable costs are adjusted for difference levels of activity.

Mixed costs can be more easily separated with this method of budgeting. The company will get a more accurate picture of the performance of the company versus the budget at the actual sales volume. Under a flexible budget, variable and fixed costs vary with output levels. Smith Wholesale’s sales price is $4 per unit. Its variable cost per unit is ASS, and its fixed costs are $10,000. The operating income on its flexible budget will increase by from 5,000 units to 6,000 units. Which of the following are true of a flexible budget? Choose 2) Is useful in comparing actual results to the budget for many levels of activity Is prepared when management cannot agree on objectives for the company Cannot be seed for evaluation purposes, because budgeted data are adjusted to reflect actual results Shows both budgeted costs and sales revenue for more than one sales level Is only useful in controlling fixed costs The budget allows management to determine how much of the operating income variance is attributable to an increase in the variable cost per unit.

Another name for the master budget is the budget. When comparing actual performance to the flexible budget, what of the following responses are correct? (Choose 2) It cannot be determined how much of the sales variance is because of volume only. There will be a variable cost variance attributed to the difference in sales activity level, and there may be a cost per unit variance. The fixed cost variance is not determined. Actual performance will be compared to the static budget only.

There will not be a fixed cost variance as long as actual activity is within the relevant range. Sales price of $39. 75. Its sales volume variance is a favorable variance of units. Assume that all numbers are within the relevant range. When preparing the budget, if variable cost per unit is 10 dollars at the lowest projected level of sales, the variable cost per unit will remain the same as sales volume is projected to increase.

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