Question 79

A department has budgeted monthly fixed manufacturing overhead cost of $43200 plus $4 per direct labour hour. The flexible budget report reflects $128000 for total budgeted manufacturing cost for the month. What is the budgeted level of activity to be achieved during the month?

42800 direct labour hours

32000 direct labour hours

21200 direct labour hours

cannot be determined

Question 82

Sunland Pharmaceuticals is evaluating its Vioxx division, an investment centre. The division has a $45100 controllable margin and $303000 of sales. How much will Sunlands average operating assets be when its return on investment is 8%?

$563750

$608850

$303000

$257900

Question 84

The current controllable margin for Claremont Division is $62900. Its current operating assets are $200000. The division is considering purchasing equipment for $60800 that will increase annual controllable margin by an estimated $10000. If the equipment is purchased, what will happen to the return on investment for Claremont Division? (Round answer to nearest cent)

an increase of 15.90%

a decrease of 8.08%

a decrease of 3.50%

a decrease of 23.13%

Question 85

Cruise Division of Brambles Companys operating results include: controllable margin, $210000; sales, $1750200; and operating assets, $1000000. The Cruise Divisions ROI is 21%. Management is considering a project with sales of $125800, variable expenses of $75600, controllable fixed costs of $50200; and an asset investment of $90000. Should management accept this new project?

No, since ROI will be lowered.

Yes, since ROI will increase.

Yes, since additional sales always mean more customers.

No, since a loss will be incurred.

Question 86

A company uses 40100 kilograms of materials for which they paid $10.00 a kilogram. The materials price variance was $64160 favourable. What is the standard price per kilogram?

$1.60

$8.40

$11.00

$11.60

PLEASE HELP, I'LL MAKE SURE TO RATE YOU!