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NEW QUESTION: 1

A. Option D
B. Option A
C. Option C
D. Option B
Answer: B

NEW QUESTION: 2
The budget and actual cost statements for the production department for the latest period were as follows.

Notes.
The 10% increase in production was required to meet unexpected additional sales demand.
The production manager is responsible for negotiating the price of materials with suppliers.
The normal working time is 900 hours per period. Any overtime worked above these 900 hours is paid at a premium of 50%.
In preparing the flexible budget for the latest period, which TWO of the following statements are correct?
(Choose two.)
A. The overtime hours should be flexed to (1,000 + 10%) - 900 = 200 hours.
B. The basic pay hours should not be flexed; they should remain at 1,000 hours.
C. The fixed costs should be flexed to $40,000 + 10% = $44,000.
D. The material quantity should be flexed to 60,000 + 10% = 66,000 kg.
E. The material price should be flexed to the actual figure of $3.10 per kg.
Answer: A,E

NEW QUESTION: 3

A. Option D
B. Option A
C. Option C
D. Option E
E. Option B
Answer: E