Answer the Following Questions Using the Information Below:
Chappell Brothers

question 149

Multiple Choice

Answer the following questions using the information below:
Chappell Brothers Corporation manufactures promotional cricket hoodies and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r } \text { Budgeted output units } & 25000 \text { units } \\\text { Budgeted machine-hours } & 30000 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 25000 \text { units } & \$ 360000 \\& \\\text { Actual output units produced } & 20000 \text { units } \\\text { Actual machine-hours used } & 28000 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 342000\end{array}$$
-Variable-manufacturing overhead costs were ________ for actual output.

• A)lower than expected
• B)higher than expected
• C)the same as expected
• D)indeterminable

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Definitions:

Ratios Variation

Changes or differences in financial ratios over a period, potentially indicating shifts in a company's financial health or performance.

Debt-to-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statements, balance sheets, and statements of cash flows.

Industry Comparison

The process of comparing the statistical measures, performance, and strategies of one company against other companies within the same sector.