Figure 16-1
Armati, SA The Following Actually Occurred -Refer to Figure 16-1

question 23

Multiple Choice

Figure 16-1
Armati, SA., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:
Armati, SA., had the following budgeted data: $\begin{array}{lr}\text { Unit sales for } 2011 & 26,000 \\\text { Unit production for } 2011 & 26,000\\\\\text { Budgeted fixed overhead for } 2011 \text { : }\\\text { Supervision } & £ 800 \\\text { Depreciation } & 2,000 \\ \text { Rent } & 100\\\\\text { Budgeted variable costs per unit: }\\\text { Direct materials } & £ 0.15 \\\text { Direct labour } & 0.20 \\\text { Supplies } & 0.02 \\\text { Indirect labour } & 0.05 \\\text { Power } & 0.02\end{array}$ The following actually occurred: $\begin{array}{ll}\text { Actual unit sales for } 2011 & 24,000 \\\text { Actual unit production for } 2011 & 28,000\\\\\text { Actual fixed overhead for } 2011 \text { : }\\\text { Supervision } & £ 850 \\\text { Depreciation } & 2,000 \\\text { Rent } & 100\\\\\text { Actual variable costs: }\\\text { Direct materials } & £ 3,500 \\\text { Direct labour } & 4,900 \\\text { Supplies } & 530 \\\text { Indirect labour } & 1,250 \\\text { Power } & 470\end{array}$
-Refer to Figure 16-1. The total flexible budgeted costs for 2011 are

• A)£10,560.
• B)£13,460.
• C)£13,510.
• D)£11,340.

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Definitions:

Milkshakes

A sweet, cold beverage made from milk, ice cream, and often flavorings or sweeteners like butterscotch, caramel sauce, or chocolate syrup.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at fixed prices.

Slope

A measure of the steepness or inclination of a line or surface, calculated as the ratio of the vertical change to the horizontal change between two points.

Tacos

A traditional Mexican dish consisting of a folded or rolled tortilla filled with various mixtures, such as seasoned meats, beans, cheese, and vegetables.