Refer to the exhibit.X Enterprises runs a private nursing home for the elderly. The company are concerned that bed occupancy rates have been falling over the past 2 years with a consequential effect on profit. They have drawn up a budget for next year as follows:The nursing home currently charges $90 per patient day.The nursing home operates at 7,500 patient days per year. In an effort to increase occupancy rates the company are proposing to reduce the current price by 10% and increase spending on advertising by $10,000 each year. What effect will this have on the margin of safety?
Answer(s): A
In a manufacturing company which produces a range of products, the production manager's salary would be classified as A.
Answer(s): C
The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.
Answer(s): B
SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was £1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.Overheads for the period were.
The variable overhead efficiency variance is:
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