Figure 8-8 Rammazzotti, Inc., Is Looking for Feedback on Company Performance. the Performance

question 187

Multiple Choice

Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2016 26,000
Unit production for 2016 26,000
Budgeted fixed overhead for 2016:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2016 24,000
Actual unit production for 2016 28,000
Actual fixed overhead for 2016:
Supervision $ 850
Depreciation 2,000
Rent 100
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
-Refer to Figure 8-8. The actual cost for direct materials for 2016 was

• A) $3,600.
• B) $3,900.
• C) $4,500.
• D) $3,500.

Differentiate between current and deferred tax expenses and understand their calculation according to GAAP.

Understand the concept and reporting requirements for deferred taxes and temporary differences in financial statements.

Identify how changes in tax laws affect income tax expense and the valuation of deferred tax assets and liabilities.

Analyze how deferred tax assets and liabilities are adjusted based on future tax rate changes and profitability outlooks.

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