Coronado Industries uses flexible budgets. At normal capacity of 9000 units, budgeted manufacturing overhead is: $27000 variable and $270000 fixed. If Stone had actual overhead costs of $300800 for 11000 units produced, what is the difference between actual and budgeted costs? $11400 unfavorable $2200 favorable $2200 unfavorable $15200 favorable Bramble Corp. recorded operating data for its shoe division for the year. The company's desired return is 5%. Which one of the following reflects the controllable margin for the year? $30000 50% $60000 Sunland Retailers has a current return on investment of 11% and the company has established an 9% minimum rate of return for the division. The division manager has two investment projects available, for which the following estimates have been made: Project A - Annual controllable margin - $27000, operating assets $490000 Project B - Annual controllable margin =$68000, operating assets - $540000 Which project should be funded? Both projects Project A Project B Neither project Controllable margin is defined as sales minus contribution margin. contribution margin less controllable fixed costs. contribution margin less noncontrollable fixed costs. sales minus variable costs. A cost is considered controllable at a given level of managerial responsibility if it changes in magnitude in a flexible budget. the manager has the power to incur the cost within a given time period. it is a variable cost, but it is uncontrollable if it is a fixed cost. the cost has not exceeded the budget amount in the master budget. Which of the following is not a true statement? Fewer costs are controllable as one moves up to each higher level of managerial responsibility. All costs are controllable at some level within a company. Responsibility accounting applies to both profit and not-for-profit entities. The term segment is sometimes used to identify areas of responsibility in decentralized operations. Return on investment is calculated by dividing. controllable margin by average operating assets. controllable margin by sales. contribution margin by average operating assets. contribution margin by sales. Coronado Industries uses flexible budgets. At normal capacity of 9000 units, budgeted manufacturing overhead is: $27000 variable and $270000 fixed. If Stone had actual overhead costs of $300800 for 11000 units produced, what is the difference between actual and budgeted costs? $11400 unfavorable $2200 favorable $2200 unfavorable $15200 favorable