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Bridgestone Company Has Developed the Following Flexible Budget Formulas for Its

question 76

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:
$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.When using an after-the-fact flexible budget,what is the variance for power? A) $1,000 U B) $1,000 F C) $1,600 U D) $3,000 U$ $\begin{array}{ll}\text { Overhead item }&\text { Actual costs }\\\text { Maintenance } & \$ 14,000 \\\text { Power } & \$ 3,600 \\\text { Direct labour } & \$ 16,000 \\\text { Equipment lease } & \$ 5,000\end{array}$
-Refer to the Figure.When using an after-the-fact flexible budget,what is the variance for power?

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Checklist

A list of items, tasks, or criteria used to ensure completeness and accuracy.

Multiperson Comparison Method

A performance evaluation method where an individual's performance is directly compared with that of several others.

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is assessed and documented, often influencing decisions on promotions, pay raises, and training needs.

Rank Ordering

The process of arranging items or individuals in a sequence based on their relative importance or value.