Bridgestone Company Has Developed the Following Flexible Budget Formulas for Its

question 17

Multiple Choice

Bridgestone Company has developed the following flexible budget formulas for its four overhead items:
Bridgestone normally produces 10,000 units (each unit requires 0.10 direct labour hours) ; however, this year 15,000 units were produced with the following actual costs:
$\begin{array}{ll}\text { Overhead item }&\text { Actual costs }\\\text { Maintenance } & \$ 14,000 \\\text { Power } & \$ 3,600 \\\text { Direct labour } & \$ 16,000 \\\text { Equipment lease } & \$ 5,000\end{array}$
-Refer to the Figure.Prepare an overhead budget for the expected activity level of 10,000 units.What is the total budgeted overhead?

• A)$12,400
• B)$27,400
• C)$124,000
• D)$139,400

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Definitions:

American Law Institute (ALI) Rule

A guideline used in the legal system that includes considerations of mental illness in the determination of criminal responsibility.

Insanity Defense

A legal defense asserting that a defendant was unable to understand the nature of their actions or distinguish right from wrong due to mental illness.

American Law Institute (ALI) Rule

A legal standard used to determine insanity which includes the inability to understand the criminality of one's actions or to conform one's actions to the law due to a mental defect or disease.

M'Naghten Rule

A legal standard used to determine whether a defendant was insane at the time of committing a crime and therefore not responsible for their actions.