16. The margins of safety in (S) for Sigma and Delta, respectively are (base your calculations on one decimal point). a. Sigma, $280,000 and Delta, $48,000 b. Sigma, $420,000 and Delta, $240,000 c. Sigma, $240,000 and Delta, $125,000 d. Sigma, $500,000 and Delta, $500,000 e. Some other amounts, 17. The degree of operating leverage for each company is a. Sigma, 1.9 and Delta, 5.00 b. Sigma, 1.6 and Delta, 1.3- c. Sigma, 2.1 and Delta, 1.3 d. Sigma, 2.8 and Delta, 4.3 e. Some other amounts. 18. Budgetary control involves all but one of the following a Modifying future plans b. Providing management with feedback on operations c. Using static budgets but not flexible budgets d. Determining differences between actual and planned results 19. Which of the following statements does not describe responsibility accounting? a. It measures the plans and actions of each responsibility center. b. It budgets to emphasize that for which each responsibility center is accountable. e. It calculates variances between budgeted and actual for each responsibility center. d. It identifies managers at fault for operating problems by preparing reports for each responsibility center. e. It is part of management accounting that involves accumulating and reporting revenues and costs on the basis of the manager who has the authority to make the day-to-day decisions about the items 20. Blue Nile makes an unassembled product that it currently sells for $55. Production costs are $20. Blue Nile is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Be Nile make? a Sell before assembly; net income per unit will be $12 greater. b. Sell before assembly; net income per unit will be $1 greater. Process further; net income per unit will be $13 greater. & Process further; net income per unit will be $1 greater. 21. Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable? Department managers should be held accountable for all variances from budgets for their departments. Department managers should only be held accountable for controllable variances for their departments. Department managers should be credited for favorable variances even if they are beyond their control. d Department managers performances should not be evaluated based on actual results to budgeted results. 22. The direct materials budget shows the following: Desired ending direct materials Direct materials required for production Beginning direct materials 18,000 pounds 99,000 pounds 13,200 pounds The total quantity of direct materials to be purchased is 103.800 pounds $4,200 pounds. 112,200 pounds d. 117,000 pounds