- Question 8 The Sydney Group Uses Flexible Budgets At Normal Capacity Of 16 000 Units Budgeted Manufacturing Overhead I 1 (43.32 KiB) Viewed 73 times
QUESTION 8 The Sydney Group uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is €128,000 variable and €360,000 fixed. If Sydney had actual overhead costs of €500,000 for 18,000 units produced, what is the difference between actual and budgeted costs? O €4,000 unfavorable €4,000 favorable 0 €12,000 unfavorable €16,000 favorable QUESTION 9 Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Pika Division is €46,000. Its current operating assets total €210,000. The division is considering purchasing equipment for €40,000 that will increase sales by an estimated €10,000, with annual depreciation of €10,000. If the equipment is purchased, what will happen to the return on investment for the division? An increase of 0.5% O A decrease of 0.5% O A decrease of 3.5% It will remain unchanged.