Question

1.Complying with regulations is a(n) (Points : 5)

1. batch-level activity.
2. product-level activity.
3. unit-level activity.
4. organization sustainingactivity

.

(TCO F) The following overhead data are for a department of alarge company.

	Actual Costs Incurred	Static Budget
Activity level (in units)	500	450
Variable costs:
Indirect materials	$5,950	$5,382
Electricity	$1,112	$1,008
Fixed costs:
Administration	$2,770	$2,800
Rent	$5,120	$5,100

Required: Construct a flexible budget performance report that wouldbe useful in assessing how well costs were controlled in thisdepartment.

3.TCO H) Hanson, Inc. makes 10,000 units per year of a partcalled a prositron for use in one of its products. Data concerningthe unit production costs of the prositron follow.
Directmaterials $250
Directlabor 125
Variable manufacturingOH 50
Fixed manufacturingOH 150
Total $575
An outside supplier has offered to sell Hanson, Inc. all of theprositrons it requires. If Hanson, Inc. decided to discontinuemaking the prositrons, 20% of the above fixed manufacturingoverhead costs could be avoided.

Required: Assume Hanson, Inc. has no alternative use for thefacilities presently devoted to production of the prositrons. Ifthe outside supplier offers to sell the prositrons for $425 each,should Hanson, Inc. accept the offer? Fully support your answerwith appropriate calculations