A) managers are expected to control costs directly under their control. B) managers are expected to control all costs, including allocated costs from head office. C) managers are expected to control all direct costs and the contribution margin that they provide. D) managers are expected to control all costs and sales from their division. A) managers are expected to control costs directly under their control. B) managers are expected to control all costs, including allocated costs from head office. C) managers are expected to control all direct costs and the contribution margin that they provide. D) managers are expected to control all costs and sales from their division.

Use the following information to answer questions EKPN Company prepared the following data in its static budget based on 150,000 machine hours: \[\begin{array} { l l } \text { Direct Materials } & \$ 4 5 0 , 0 0 0 \\ \text { Direct Labour } & 2 2 5 , 0 0 0 \\ \text { Variable Overhead } & 1,125,000 \\ \text { Fixed Overhead } & \mathbf { 2 } , 100,000 \end{array}\] \[\begin{array} { l l } \text { Actual Results: } & \\ \text { Machine Hours } & 160,000 \text { hours } \\ \text { Direct Materials } & \$ 475,000 \\ \text { Direct Labaur } & 2 4 5 , 000 \\ \text { Variable Overhead } & 1,150,000 \\ \text { Fixed Overhead } & \mathbf { 2 } , 110,000 \end{array}\] -What was the difference between the actual and budgeted direct material costs at the actual level of activity?

A) $25,000 unfavourable B) $25,000 favourable C) $5,000 unfavourable D) $5,000 favourable A) $25,000 unfavourable B) $25,000 favourable C) $5,000 unfavourable D) $5,000 favourable

Given below is an excerpt from a management performance report for a profit centre: $\begin{array}{llll} &\underline{\text { Budget }}&\underline{\text { Actual }}&\underline{\text {Difference }}\\ \text { Contribution margin } & \$ 1,040,000 & \$ 1,020,000 & \$ 20,000 \\ \text { Controllable fixed costs } & 430,000 & 420,000 & 10,000 \end{array}$ How well did the manager perform overall?

A) $20,000 below expectations B) $40,000 below expectations C) equal to expectations D) The ROI needs to be known for a total assessment. A) $20,000 below expectations B) $40,000 below expectations C) equal to expectations D) The ROI needs to be known for a total assessment.

Use the following information to answer questions EKPN Company prepared the following data in its static budget based on 150,000 machine hours: \[\begin{array} { l l } \text { Direct Materials } & \$ 4 5 0 , 0 0 0 \\ \text { Direct Labour } & 2 2 5 , 0 0 0 \\ \text { Variable Overhead } & 1,125,000 \\ \text { Fixed Overhead } & \mathbf { 2 } , 100,000 \end{array}\] \[\begin{array} { l l } \text { Actual Results: } & \\ \text { Machine Hours } & 160,000 \text { hours } \\ \text { Direct Materials } & \$ 475,000 \\ \text { Direct Labaur } & 2 4 5 , 000 \\ \text { Variable Overhead } & 1,150,000 \\ \text { Fixed Overhead } & \mathbf { 2 } , 110,000 \end{array}\] -What was the budgeted variable costs per machine hour for variable overhead, rounded to the nearest whole cent?

A) $7.03/machine hour B) $7.50/machine hour C) $19.53/machine hour D) $20.83/machine hour A) $7.03/machine hour B) $7.50/machine hour C) $19.53/machine hour D) $20.83/machine hour