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

question 48

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:  Unit sales for 201126,000 Unit production for 201126,000 Budgeted fixed overhead for 2011 :  Supervision £800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit:  Direct materials £0.15 Direct labour 0.20 Supplies 0.02 Indirect labour 0.05 Power 0.02\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:  Actual unit sales for 201124,000 Actual unit production for 201128,000 Actual fixed overhead for 2011 :  Supervision £850 Depreciation 2,000 Rent 100 Actual variable costs:  Direct materials £3,500 Direct labour 4,900 Supplies 530 Indirect labour 1,250 Power 470\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 static budget for total variable costs is

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