Question
One of the accountants at Agave Industries is attempting to identify the activity measure best suited to use for the flexible budget. Based on the
One of the accountants at Agave Industries is attempting to identify the activity measure best suited to use for the flexible budget. Based on the limited information provided, which of the following activity measures should be used for the flexible budget?
| Activity | Variable overhead cost | Activity measure | Month | ||||||||||
| Machine hours | 168,113 | 1,368 | January | ||||||||||
| Labor hours | 6,432 | January | |||||||||||
| Set-ups | 112 | January | |||||||||||
| Labor cost | 96,555 | January | |||||||||||
| Machine hours | $ | 236,018 | 1,920 | February | |||||||||
| Labor hours | 6,498 | February | |||||||||||
| Set-ups | 104 | February | |||||||||||
| Labor cost | 97,897 | February | |||||||||||
Multiple Choice
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Labor cost.
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Set-ups.
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Machine hours.
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Labor hours
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Auditing In The Public Sector Efficiency Economy And Program Results
Authors: James L. Savage, Felix Pomeranz, Alfred J. Cancellieri, Joseph B. Stevens
1st Edition
0882621238, 978-0882621234
