Use the following information to answer questions 31-34.

Keith, the intern, was given some information from his supervisor. The supervisor wants him to figure out how well her department is doing. Keith suggests using Return On Investment as a gauge. The figures include: Sales of $250 000, Net Operating Income of $30 000, Average Operating Assets of $200 000, and the company's required return is 12%.

Using the Direct Method, what is the total overhead cost after allocation for the Production department?

Question 31 options:

$315 000

$195 000

$155 000

$165 000

Using the Step Method, determine the amount of overhead that will be allocated from the Custodial Department (the amount of overhead from Custodial that will be allocated to other departments). Round to the nearest dollar.

Question 32 options:

$131 818

$104 545

$63 636

None of the Above

The master budget process usually begins with which of the following?

Question 33 options:

Production budget.

Sales budget.

Operating budget.

Cash budget.

Which one of the following variances is MOST controllable by a production supervisor?

Question 34 options:

Materials price variance.

Materials usage variance.

Fixed overhead volume variance.

Labour rate variance.