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

question 9

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 for direct materials cost in 2011 is

• A)£3,500.
• B)£3,600.
• C)£3,900.
• D)£4,000.

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Definitions:

Trichomes

Hair-like outgrowths on plants that serve various functions, including protection against herbivory and desiccation, and sometimes play a role in reproduction.

Stinging Needles

Structures found on certain plants, like nettles, that deliver a sharp sting and inject substances causing pain and irritation.

Secondary Growth

The increase in thickness or girth of a plant, resulting from the activity of the vascular cambium and cork cambium, leading to the development of wood and bark.

Primary Growth

The increase in length of the shoot and the root that occurs in plants due to cell division in the apical meristems.