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Bridgestone Company Has Developed the Following Flexible Budget Formulas for Its

question 16

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

Definitions:

Health Insurance Providers

Health Insurance Providers are companies or organizations that offer plans aimed at covering the costs of medical care for insured individuals or entities.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the return of an investment by its cost.

Nearest Hundred Thousand

Rounding a number to the closest increment of one hundred thousand.

Social Security Contributions

Payments made to a government scheme that provides retirement, disability, and survivals benefits, funded through taxes on employers and employees.