Question
1. Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins
1. Cahalane Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 11,600 skeins and the actual level of activity was 12,000 skeins. The company's owner budgets for dye costs, a variable cost, at $0.31 per skein. The actual dye cost last month was $3,540. In the company's flexible budget performance report for last month, what would have been the spending variance for dye costs?
a. $180 F
b. $124 U
c. $56 F
d. $118 U
2. The concept of responsibility accounting means that:
a. Budgetary data should be reviewed and approved by all levels of management.
b. An employee's performance should be evaluated only on those items under his or her control.
c. An employee's performance should be evaluated only by his or her immediate supervisor.
d. Budgetary data should be reviewed and approved by the budget committee.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started