QUESTION 10 allowed for output O True D False QUESTION 11 Standards are determin

Question

QUESTION 10 allowed for output O True D False QUESTION 11 Standards are determined at the end of an accounting period to enable comparisons between standard costs and actual costs. O True @ False QUESTION 12 Milli Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead associated with this division is $50,000, of which $5,000 cannot be eliminated. The effect of this on Mili's operating income would be an increase of $5,000 $20,000 $25,000 D $30.000

Explanation / Answer

Q10 Ans is True Explanation: An unfavorable material quantity variance shows that actual quantity for Material exceeds the standard quantity allowed Material Qty Variance = (AQ-SQ) x SP Q11 Ans is False Explanation: Standards are set based on market research and analysis before the actual production and adjusted time to time as and when actual production data available to commensurate practical environment. Q12 Ans is C $25,000 Explanation: Effect on NOI Contribuion -20000 Fixed Cost 45000 Net Operating income 25000

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