Hyland Resources Inc

question 39

Multiple Choice

Hyland Resources Inc. uses practical capacity as the denominator to set the cost of supplying capacity and for the current period the budgeted cost per unit of supplying capacity was $44. Practical capacity was set at 14,000 units with theoretical capacity at 20,000 units. During the period, only 11,000 units were produced while the master budget assumed that the company would produce 13,000 units. What is value of the manufacturing resources not used during the period?

• A) $132,000
• B) $308,000
• C) $396,000
• D) $44,000

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Definitions:

Scientific Method

Systematic method of obtaining and evaluating information relevant to a problem.

Variable

Measurable factor or characteristic that can vary within an individual, between individuals, or both.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change as a result of manipulations to the independent variable.

Hypothesis

Testable statement about two or more variables and the relationship between them.