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

question 27

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 flexible budget variance for indirect labour for 2011 is

• A)£1,250 F.
• B)£50 F.
• C)£50 U.
• D)£1,200 U.

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Definitions:

Managing Through People

Achieving objectives by working effectively with and through the people in an organization.

New Public Service

A modern approach to public administration that emphasizes serving citizens and addressing their needs and preferences.

Commanding People

The act of directing or controlling individuals or groups with authority, often without discussion or input from those being commanded.

Implementing Policies

The process of putting plans, guidelines, or rules into effect to achieve desired outcomes.