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

question 70

Multiple Choice

Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. $$\begin{array} { | l | l | } \hline \text { Praductim Input } & \text { Standard Cast } \\\hline \text { Direct Materials } & \begin{array} { l } \text { 2 kilos of raw material } \\\text { Each kilo } = \$ 5\end{array} \\\hline \text { Direct Labour } & \begin{array} { l } \text { 1 hour } \\\text { Direct Labour is charged at } \$ 10 \text { per hour }\end{array} \\\hline \text { Variable Overhead } & \text { \$2 per direct labour hour } \\\hline \text { Fixed Overhead } & \$ 4 \text { per frog } \\\hline\end{array}$$ 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 fixed overhead for the year is:

• A) $88,000
• B) $72,727
• C) $80,000 $ $10,000

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Definitions:

Supply Chain

A network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.

Macro Processes

Large-scale, high-level operational processes in an organization that span across multiple functions and departments.

CRM

Customer Relationship Management (CRM) refers to practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.

Push/Pull View

A concept in supply chain management that divides processes into two categories: 'push' systems that forecast demand and 'pull' systems that respond to demand signals.