10. After the sales budget is prepared, the capital e tal expenditures budget is normally prepared next a. True b. False SECTION B: MULTIPLE CHOICE QUESTIONS (20 POINTS) 11. What term is commonly used to describe the concept where manufactured products is composed of direct materials cost, directab variable factory overhead cost? a. Absorption costing b. Variable costing c. Standard costing d. Differential costing 12. Under absorption costing, which of the following costs would not be included in finished goods inventory? a. direct labor cost b. direct material cost c. variable and fixed factory overhead cost d. variable and fixed selling and administrative expenses Philadelphia Company operates a variable costing system and has the following information for October 2017. Use the information to answer questions 13-15 below; Sales ariable cost of ixed ariable selling and administrative xed selling and administrative expenses $800,000 560,00 110,000 sold costs 40,00 30,00 13. Compute the manufacturing margin a. $240,000 b. $190,000 c. $130,000 d. $570,000 14. Compute the contribution margin a. $170,000 b. $200,000 c. $160,000 d. $130,000 15. Compute Income from operations a. $90,000 b. $210,000 c. $60,000 d. $130,000