Answer the Following Questions Using the Information Below:
Alice Springs

question 73

Multiple Choice

Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r } \text { Budgeted output units } & 20000 \text { units } \\\text { Budgeted machine-hours } & 6000 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \\& \\\text { Actual output units produced } & 24000 \text { units } \\\text { Actual machine-hours used } & 7200 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 242000\end{array}$$
-Once standards have been set,the costs of using _____________ costing are low relative to the costs of using actual costing or normal costing.

• A)activity
• B)inventory
• C)standard
• D)budgeted

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Definitions:

Financial Year

A period used for calculating annual financial statements in businesses and other organizations, typically lasting for 12 months.

Policy and Procedure Bulletin

A document issued by an organization to communicate new or updated policies and procedures to its members or employees.

Company Rules

The formal guidelines and regulations that govern behavior and procedures within an organization.

Goodwill

The intangible asset that arises when a business is valued at more than its tangible assets, often due to reputation, brand, or customer loyalty.