The Ferguson Company Makes and Sells a Single Product If the Sales Budget Indicates That 120,000 Units Will Be

question 14

Multiple Choice

The Ferguson Company makes and sells a single product.The company has estimated the following costs in order to prepared their selling and administrative expenses budget for 2013: $\begin{array}{ll}&\text { Variable Cost per }& \text { Fixed Costs }\\& \text { Unit Sold } \\\text { Sales Commission } & \$ .40&-- \\\text { Shipping } & \$ .60&-- \\\text { Advertising } & \$ .30&\$35,000 \\\text { Depreciation on Office Equipment } & -&\$16,000 \\\text { Other } & \$ .35&\$96,000\end{array}$ If the sales budget indicates that 120,000 units will be sold in 2013, the total budgeted selling and administrative expenses will be:

• A)$329,000
• B)$345,000
• C)$198,000
• D)$147,000

Recognize the role of self-regulation and external bodies in managing business conduct and consumer disputes.

Assess the balance between profit, business objectives, and societal expectations and desires.

Understand the impact of legislation like Sarbanes-Oxley Act on business practices and financial regulation.

Understand diagnostic criteria for manic, hypomanic, and major depressive episodes according to DSM-5.

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Definitions:

Specialized Electric Motors

Electric motors that are designed and manufactured for specific applications or to meet particular requirements, distinguishing them from standard or generic motors.

Cost Drivers

Factors that cause changes in the cost of an activity or operation, influencing the total expenses.

Manufacturing Overheads

Expenses related to the manufacturing process that are not directly tied to the production of individual units, such as factory rent and machinery maintenance.

Activity-based System

An accounting method that assigns costs to products or services based on the activities that go into producing them, aiming for more accurate costing by tracing resources consumed by activities.