Fickle Factory Ltd Produces Unique Large Ceramic Frogs Total Fixed Overhead for the Year Is Estimated to Be

question 21

Multiple Choice

Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. $$\begin{array} { | l | l | } \hline \text { Praductim Input } & \text { Standard Cast } \\\hline \text { Direct Materials } & \begin{array} { l } 2 \text { kilos of raw material } \\\text { Each kilo } = \$ 5\end{array} \\\hline \text { Direct Labour } & \begin{array} { l } \text { 1 hour } \\\text { Direct Labour is charged at } \$ 10 \text { per hour }\end{array} \\\hline \text { Variable Overhead } &\$ 2 \text { per direct labour hour } \\\hline \text { Fixed Overhead } & \$ 4 \text { per frog } \\\hline\end{array}$$ Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is $45. Actual sales and production was 22,000
The flexible budget for direct materials the year is:

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Definitions:

Syncline

A geological fold with layers that dip inward from both sides towards the central axis, typically forming a trough.

Monocline

A geological fold in which all strata are inclined in the same direction, forming a step-like structure.

Metamorphosed

Refers to rocks that have undergone a change in mineral composition and texture due to exposure to high temperature and pressure conditions.

Shale

A fine-grained sedimentary rock composed of mud that splits easily into layers, often used in the production of oil and natural gas.