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

question 7

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 static budget variance for rent is

• A)£100 F.
• B)£100 U.
• C)£-0-.
• D)£50 U.

Identify the most widespread and influential type of formal organization.

Recognize the role of reference groups in shaping individual behavior.

Understand how the structure and size of organizations impact efficiency and employee satisfaction.

Explore strategies for increasing organizational efficiency and employee morale.

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Definitions:

Abuse and Torture

Unjust practices involving the infliction of severe pain or suffering, physical or psychological, often by those in positions of power, against individuals.

International Community

A collective term for all countries and their governments, often used in the context of diplomatic relations and global issues.

Anti-Ballistic Missile Treaty

An agreement between the United States and the Soviet Union signed in 1972 to limit the use and development of anti-ballistic missile (ABM) systems used in defending against missile-delivered nuclear weapons.

National Missile Defense

A defense strategy and infrastructure established to protect a country from missile attacks by intercepting incoming missiles.