1.
The selling price.
Budgeted Fixed Manufacturing
The budgeted fixed manufacturing overhead rate is that rate at which the total budgeted fixed overhead costs are allocated.
Production Volume Variance:
The production volume variance is the difference between the budgeted amounts of fixed overhead costs less the fixed overhead cost allocated for the actual output produced.
2.
The new selling price and comment on the choice of budgeted production affect the selling price and competitive position.
3.
The selling price using practical capacity as the denominator level of capacity and the effect of this on the position of the company in the marketplace and the effect of the choice on the variance of production-volume.

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Chapter 9 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
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