Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r }
\text { Budgeted output units } & 20000 \text { units } \
\text { Budgeted machine-hours } & 6000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \
& \
\text { Actual output units produced } & 24000 \text { units } \
\text { Actual machine-hours used } & 7200 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 242000
\end{array}$$
-Once standards have been set,the costs of using _____________ costing are low relative to the costs of using actual costing or normal costing.
A)activity
B)inventory
C)standard
D)budgeted

Question

Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
 $$\begin{array} { l r } 
\text { Budgeted output units } & 20000 \text { units } \
\text { Budgeted machine-hours } & 6000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \
& \
\text { Actual output units produced } & 24000 \text { units } \
\text { Actual machine-hours used } & 7200 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 242000
\end{array}$$
-Once standards have been set,the costs of using _____________ costing are low relative to the costs of using actual costing or normal costing.
A)activity
B)inventory
C)standard
D)budgeted

Quizplus · Accepted Answer

Standard costing uses predetermined standards for costs and activity levels, which means that once the standards have been set, the costs of using standard costing are relatively low compared to actual costing or normal costing, which require ongoing measurement and analysis of actual costs and activity levels. Therefore, choice C is the best answer.

Answer the Following Questions Using the Information Below: Alice Springs

Answer the Following Questions Using the Information Below:
Alice Springs