Answer the Following Questions Using the Information Below:
V8 Engineering

question 232

Multiple Choice

Answer the following questions using the information below:
V8 Engineering Pty used the following data to evaluate their current operating system.The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.
$$\begin{array} { l r r } & \text { Actual } & \text { Budgeted } \\\text { Units sold } & 206000 \text { units } & 200000 \text { units } \\\text { Variable costs } & \$ 965000 & \$ 950000 \\\text { Fixed costs } & \$ 53000 & \$ 50000\end{array}$$
-What is the static-budget variance of revenues?

• A)$13 000 favourable
• B)$6000 favourable
• C)$13 000 unfavourable
• D)$90 000 favourable

Understand the basic principles of business combinations and their accounting treatment.

Calculate and interpret the consolidation entries related to the acquisition of a subsidiary.

Determine the value of noncontrolling interests and their accounting treatment.

Value goodwill and other intangible assets arising from business combinations.

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Definitions:

Coupon Interest Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Market Interest Rate

The prevailing rate of interest available in the market on loans, bonds, and other financial instruments.

Semi-Annual

Occurring twice a year, typically every six months.

Long-Term Notes

Debt securities with a maturity date longer than one year, representing borrowed funds that need to be repaid.