Velten Corporation's Flexible Budget Performance Report for Last Month Shows

question 63

Multiple Choice

Velten Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $45,198 and that the spending variance for indirect materials cost was $9,114 favorable. During that month, the company worked 18,600 machine-hours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:

• A) $1.90
• B) $2.86
• C) $1.94
• D) $2.92

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Definitions:

Transparency

The principle of allowing individuals clear access to information, processes, and decisions.

Forms of Coercion

Various means by which individuals or entities force others to act in certain ways against their will, often involving threats or pressure.

Rule Breaches

Incidents where established rules, policies, or laws are violated, potentially leading to disciplinary action or legal consequences.

Corruption

The abuse of entrusted power for private gain.