170. Maxim Technologies projected sales of 35,000 computers for 2012. The estimated January 1, 2012, inventory is 3,000 units, and the desired December 31, 2012, inventory is 9,000 units. What is the budgeted production (in units) for 2012?
171. Match the following terms with the best definition given.
1. Setting goals.Directing
2. Occurs when budgets are too loose.Planning
3. Occurs when employee self-interests are different from company goals.Budget padding
4. Actions to achieve budgeted goals.Goal conflict
5. Compare actual performance against budgeted goals.Controlling
172. Match the following terms with the best definition given.
1. Shows expected results at only one activity level.Master budget
2. Shows expected results at several activity levels.Sales budget
3. Begins by estimating the quantity of sales.Flexible budget
4. Integrated set of operating, investing and financing budgets for a period of time.Production budget
5. Estimates the number of units to be manufactured to meet sales and inventory levels. Static budget
173. Match the following terms with the best definition given.
1. A plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans. budgeted balance sheet
2. An accounting report that presents predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget period. budget
3. A plan showing the number of units to be produced each month.sales budget
4. A plan that lists dollar amounts to be both received from disposing of plant assets and spent on purchasing additional pant assets to carry out the budgeted business activities. capital expenditure budget
5. A formal statement of future plans, usually expressed in monetary terms.production budget
6. A plan showing the units of goods to be sold and the sales to be derived; usually the starting point in the budgeting process. cash budget
174. Finewood Cabinet Manufacturers uses flexible budgets that are based on the following manufacturing data for the month of July:
Direct materials$8 per unit
Direct labor$5 per unit
Electric power (variable)$0.30 per unit
Electric power (fixed)$4,000 per month
Supervisor salaries$15,000 per month
Property taxes on factory$4,000 per month
Straight-line depreciation$2,900 per month
Prepare a flexible budget for Finewood based on production of 10,000, 15,000, and 20,000 units.