Use the Following Information to Answer Questions
EKPN Company

question 16

Multiple Choice

Use the following information to answer questions
EKPN Company prepared the following data in its static budget based on 150,000 machine hours:
$$\begin{array} { l l } \text { Direct Materials } & \$ 4 5 0 , 0 0 0 \\\text { Direct Labour } & 2 2 5 , 0 0 0 \\\text { Variable Overhead } & 1,125,000 \\\text { Fixed Overhead } & \mathbf { 2 } , 100,000\end{array}$$ $$\begin{array} { l l } \text { Actual Results: } & \\\text { Machine Hours } & 160,000 \text { hours } \\\text { Direct Materials } & \$ 475,000 \\\text { Direct Labaur } & 2 4 5 , 000 \\\text { Variable Overhead } & 1,150,000 \\\text { Fixed Overhead } & \mathbf { 2 } , 110,000\end{array}$$
-What is the budgeted fixed overhead at the actual level of activity?

• A)$2,100,000
• B)$2,110,000
• C)$2,240,000
• D)$3,260,000

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Definitions:

Cultural Values

The core principles and standards that guide the behavior and practices of a cultural group, influencing individual attitudes, customs, and ethics.

Dominant Cultural

Pertaining to the prevailing cultural norms, values, and practices of the majority group within a society.

High Tolerance

The ability or capacity to endure a large amount of substance intake, stress, or differing viewpoints without adverse reactions.

Ambiguity

The quality of being open to more than one interpretation; inexactness.