EXPLAIN THE ANSWER STEP BY STEP IN DETAILS

q1.Oriole Company prepared a 2022 budget for 180000 units of product. Actual production in 2022 was 190000 units. To be most useful, what amounts should a performance report for this company compare?

a.The actual results for 190000 units with the original budget for 180000 units.

b.The actual results for 190000 units with a new budget for 190000 units.

c.The actual results for 190000 units with last year's actual results for 196000 units.

d.All of these comparisons are equally useful.

Q2.What amounts appear on a flexible budget?

Budgeted amounts for the actual activity level achieved.

Actual costs for the estimated activity level.

Actual costs for the budgeted activity level.

Original budgeted amounts at the static budget activity level.

Q3.The activity index used in preparing the flexible budget

is the same for all departments.

should significantly influence the costs that are being budgeted.

is only applicable to fixed manufacturing costs.

is prescribed by generally accepted accounting principles.

Q4.For June, Marigold Corp. estimated sales revenue at $680000. It pays sales commissions that are 4% of sales. The sales manager's salary is $320000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15000. How much are budgeted selling expenses for the month of July if sales are expected to be $540000?

$362000

$27000

$369000

$42000

Q5.Sheridan Company uses flexible budgets. At normal capacity of 25000 units, budgeted manufacturing overhead is: $48000 for variable costs and $270000 for fixed costs. If Sheridan Company had actual overhead costs of $320400 for 27000 units produced, what is the difference between actual and budgeted costs? (do not round intermediate calculation.)

$5760 favorable

$1440 unfavorable

$4320 unfavorable

$1440 favorable

Q6.Concord Corporation incurs the following costs to produce 10500 units of a subcomponent:

Direct materials	$8200
Direct labor	12250
Variable overhead	12000
Fixed overhead	16000

An outside supplier has offered to sell Concord the subcomponent for $2.00 a unit. If Concord accepts the offer, by how much will net income increase (decrease)?

$27450

$(550)

$(11450)

$(4050)

Q7.A company has a process that results in 18000 pounds of Product A that can be sold for $10 per pound. An alternative would be to process Product A further at a cost of $150000 and then sell it for $18 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

Process further because the company will be better off by $6000.

Process further because the company will be better off by $144000.

Sell now because the company will be better off by $150000.

Sell now because the company will be better off by $6000.

Q8.Oriole Company produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Product		Sales Value at Split-off	Additional Variable Costs	Sales Value after Further Processing
Green lumber		$156600	$21500	$194000
Rough lumber		120000	29000	178600
Sawdust		107500	19400	136000

The additional profit that would result from processing rough lumber further is

$29600.

$149600.

$91000.

$58600.

Q9.Vaughn Manufacturing is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

	Old Equipment		New Equipment
Purchase price	$240000		$600000
Accumulated depreciation	98000		- 0 -
Annual operating costs	302000		244000

If the old equipment is replaced now, it can be sold for $61000. Both the old equipment's remaining useful life and the new equipment's useful life is 8 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is

$(62000)

$98000`

$61000

$(75000)

q10.Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows:

	Wood		Aluminum		Hard Rubber		Total
Sales	$580000		$320000		$65000		$965000
Variable expenses	380000		190000		58000		628000
Contribution margin	200000		130000		7000		337000
Fixed expenses	75000		35000		22000		132000
Net income (loss)	$125000		$ 95000		$(15000)		$205000

Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

$198000

$110000

$190000

$220000