Crystal Clear Company's Budgeted Production Costs for the Current Year

question 24

Multiple Choice

Crystal Clear Company's budgeted production costs for the current year at an expected output of 20 000 units were:
$$\begin{array} { l r } \text { Driect labour} & \$ 26 \text { per unit}\\\text { Direct materials } & \$ 14 \text { per unit}\\\text {Variable overhead } & \$ 8 \text { per unit}\\\text {Fixed overhead } & \$ 45000\end{array}$$
Assume Crystal Clear uses a flexible budgeting system and actually produced 24 000 units at a total cost of $1 150 000. By how much did actual production cost differ from the flexible budget amount and in which direction?

• A) Actual cost was $145 000 over flexible budget
• B) Actual cost was $145 000 under flexible budget
• C) Actual cost was $47 000 over flexible budget
• D) Actual cost was $47 000 under flexible budget

Comprehend the basics of visual perception, including light transduction and color vision.

Recognize the importance of context effects in altering visual perception and judgment.

Grasp the role of sensory adaptation in the perception process.

Identify how perceptions can be influenced by physical characteristics of stimuli, such as intensity and wavelength.

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Definitions:

Invested

The allocation of resources, typically money, into ventures with the expectation of generating income or profit.

Interest

The cost of borrowing money or the earnings from lending money, calculated as a percentage of the principal amount.

Simple Interest Rate

A rate used to calculate the interest charge on a loan over a specific period of time, not accounting for the effect of compounding.

Investment

The act of distributing funds or resources in anticipation of earning profits or income.