Dancause Corporation Manufactures and Sells a Single Product

question 380

Multiple Choice

Dancause Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,090 units. The company has provided the following data concerning the formulas to be used in its budgeting: The manufacturing overhead in the flexible budget for October would be closest to:

• A)$54,453
• B)$54,470
• C)$52,739
• D)$52,947

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Definitions:

Expected Return

The predicted average return on an investment over a given period, factoring in the probabilities of all possible outcomes.

Defined Benefit Plans

A type of pension plan where the benefits that an employee will receive on retirement are calculated based on factors such as salary history and length of employment.

Defined Contribution Plan

A type of retirement plan where the amount of the employer's annual contribution is specified, with the final benefits received by the employee depending on the investment's performance.

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.