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1. The? ________reveals whether or not additional sales revenue can offset an increase in costs in the flexible budget performance report. A.static budget variance B.actual

1. The? ________reveals whether or not additional sales revenue can offset an increase in costs in the flexible budget performance report.

A.static budget variance

B.actual variance

C.sales volume variance

D.flexible budget variance

2.

Boat Hull Manufacturing produces boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is? $420 and reported the following manufacturing cost and expenses? data:

Boat Hull Manufacturing

Manufacturing Costs and Variable Expense Report

T24 Part

Direct materials

?$905

Direct labor

?$182

Variable manufacturing overhead

?$110

Fixed manufacturing overhead? (current production? level)

?$140

Variable selling expenses? (only incurred on sales to outside? consumers)

?$80

What is the highest transfer price the selling division would? receive, and the buying division would? pay, for the T24? part?

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