Lo 3 type rc 238 21 santa fe corporation has a highly

LO: 3 Type: RC

21. Santa Fe Corporation has a highly automated production facility. Which of the following
correctly shows the two factors that would likely have the most direct influence on the company's
manufacturing overhead budget?
LO: 4 Type: N
22. May Production Company, which uses activity-based budgeting, is in the process of preparing a
manufacturing overhead budget. Which of the following would likely appear on that budget?
LO: 4 Type: N
23. FastTec, which sells electronics in retail outlets and on the Internet, uses activity-based budgeting
in the preparation of its selling, general, and administrative expense budget. Which of the
following costs would the company likely classify as a unit-level expense on its budget?
LO: 4 Type: N
24. Which of the following would have no effect, either direct or indirect, on an organization's cash
budget?
A. Sales revenues.
B. Outlays for professional labor.
C. Advertising expenditures.
D. Raw material purchases.
E. None of the above, as all of these items would have some influence.
Answer: E LO: 4 Type: N
238
25. Atlanta Sporting Goods sells bicycles throughout the southeastern United States. The following
data were taken from the most recent quarterly sales forecast:
End-of-Month
Expected Sales Target Inventory
April 1,700 units 200 units
May 1,850 units 270 units
June 2,000 units 310 units