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Sub Render Co. CPA is preparing activity-based budgets for 2019. The partners expect the firm to generate billable hours for the years follows: Data entry Auditing Tax Consulting 1,010 hours 2,460 hours 2,160 hours 410 hours The company pays $10 per hour to data-entry clerks, $45 per hour to audit personnel, $53 per hour to tax personnel, and 553 per hour to consulting personnel. Prepare a schedule of budgeted labor costs for 2019 using activity-based budgeting. RENDER CO. CPA Activity-Based Budget For The Year Ending December 31, 2019 Budgeted Budgeted Budgeted Hours Rate/hour Cost Select each of the terms with the best description of its purpose. Terme Definitions 1. Management's use of budgets to see that planned objectives are met. 2. A plan showing units to be sold the usual starting point in the master budget process. 3. A budgetary cushion used to meet performance targets. 4. Budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed 5. A report that shows predicted balances of assets, labilities and equity at the end of a budget period. 6. Shows the number of units for a manufacturer to produce in a period. 7. A report that shows predicted revenues and expenses for a budgeting period 8. Employees affected by a budget help in preparing it. MM Co. predicts sales of $40,000 for May. MM Co. pays a sales manager a monthly salary of $3,900 plus a commission of sofas dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result. MM's product receive better placement on store shelves and thus May sales are predicted to increase by 9%. In addition, MM's shipping commere predicted to decrease from 5% of sales to 4% of sales. Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging (1) (2) Budgeted sales Budgeted selling expenses

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