1 points QUESTION 1 What exists when budgeted costs exceed actual results? a an

Question

1 points QUESTION 1 What exists when budgeted costs exceed actual results? a an excess profit Ob an unfavourable difference c, a budgeting error d, a favourable difference 1 points QUESTION 2 A department has budgeted monthly fixed manufacturing overhead cost of $40,000 plus $5 per direct labour hour. The flexible budget report reflects $120,000 for total budgeted manufacturing cost for the month. What is the budgeted level of activity to be achieved during the month? a 8,000 direct labour hours b 16,000 direct labour hours C 32,000 direct labour hours Od. 24,000 direct labour hours QUESTION 3 1 poit Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

Explanation / Answer

Ans 1: d) a favourable difference.

Reason: a favourable difference is when the actual cost is less than the actual cost. Thus it indicates that company has saved expenses so it will be a favourable difference .

Ans 2: option b:16000 direct labor hours

Solution: let the labour hours be x.

So according to the question:

40000+5*x=120000

=X = 16000

Ans 3: option b$38

Reason: maximum amount willing to be paid is the amount he is getting on purchasing From outsiDe otherwise the unit will be at loss which the manager mightn't be willing to bear. Thus maximum amount per unit that division b might be willing to pay will be $38.

Ans 4: option b

Reason: variable cost are incurred in direct proportion of units produved or sold., So manager can control it by reducing the volume.

Note: as per chegg policy we are required to answer only first 4 mcq ,so kindly upload 5-10 separately. And please comment in case of any doubt.

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