Bolt Industries Gathered the Following Information for the Month Ended

question 153

Multiple Choice

Bolt Industries gathered the following information for the month ended March 31:
The static budget volume is 4,500 units:
Overhead flexible budget:

Actual production was 10,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours.
-What is the standard variable overhead rate per machine hour at Bolt Industries?

• A) $3.60
• B) $2.00
• C) $2.50
• D) $4.00

Evaluate the financial health of a business by analyzing its budget variances.

Understand the basic concepts and significance of budgeting in management.

Identify the sequential order in which different budgets are prepared.

Recognize the role and structure of the master budget.

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Definitions:

Cash-generating Units

The smallest identifiable group of assets that generates cash inflows largely independent of the cash inflows from other assets or groups of assets.

AASB 6/IFRS 6

Standards guiding the exploration for and evaluation of mineral resources, providing criteria on the recognition and measurement of exploration and evaluation expenditures.

Non-regenerative Resources

Resources that cannot be replenished or renewed after their consumption, such as fossil fuels and minerals.