Fall 2017 Final Exam ACCT202 Teng 38. Chambers, Inc. uses flexible budgets. At n
ID: 2600498 • Letter: F
Question
Fall 2017 Final Exam ACCT202 Teng 38. Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs? A) $2,000 unfavorable. B) $2,000 favorable. C) $6,000 unfavorable. D) $8,000 favorable. 39. Of the following choices, which contain both a traceable fixed cost and a common fixed cost? A) Profit center manager's salary and timekeeping costs for a responsibility center's employees B) Company president's salary and company personnel department costs C) Company personnel department costs and timekeeping costs for a responsibility center's employees. D) Depreciation on a responsibility center's equipment and supervisory salaries for the center 40The selection of levels of activity to depict a flexible budget i. will be witin the relevant range 2. is largely a matter of expodiency 3. is governed by gemerally accepted accounting principles A) 1 B) 2 C) 3 D) 1 and 2 41. If the internal rate of return is used as the discount rate in the net present value calcula-tion, the net present value will be A) zero. B) positive C) negative. D) undeterminable. 42. The capital budgeting method that takes into account both the size of the original investment and the discounted cash flows is the A) cash payback method. B) internal rate of return method. C) net present value method. D) profitability index Page 10Explanation / Answer
Solution:-
38. B) $ 2,000 Favorable
Explanation:-
39. C) Company personnel department costs and timekeeping costs for a responsibility center's employees.
40. D) 1 and 2.
41. A) Zero.
42. D) profitability index.
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Budgeted (18,000 * 4) + 180,000 252,000 Actual 250,000 Variance 2,000 FRelated Questions
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