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1. A company's master budget for October is to manufacture and sell 31,700 units, for a total sales revenue of $304,000, total variable costs of

1. A company's master budget for October is to manufacture and sell 31,700 units, for a total sales revenue of $304,000, total variable costs of $155,010, and total fixed costs of $29,000. The company actually manufactured and sold 33,700 units, and generated $62,000 of operating income in October.

The flexible-budget operating income in October was: (Do not round intermediate calculations.)

Multiple Choice

  • $67,390.

  • $122,949.

  • $129,390.

  • $136,076.

  • $139,799.

2. Marv Company's direct labor costs for manufacturing its only product were as follows for October:

Standard direct labor hours (DLHs) per unit of product 2.0
Budgeted finished units for the period 6,700
Actual number of finished units produced 5,500
Standard wage rate per direct labor hour (SP) $ 27.00
Direct labor costs incurred $ 300,000
Actual wage rate per direct labor hour (AP) $ 25.00

The direct labor rate variance for October was:

Multiple Choice

  • $2,000 unfavorable.

  • $16,000 favorable.

  • $24,000 favorable.

  • $27,000 unfavorable.

  • $43,000 unfavorable.

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