Question
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
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$67,390.
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$122,949.
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$129,390.
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$136,076.
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$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
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$2,000 unfavorable.
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$16,000 favorable.
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$24,000 favorable.
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$27,000 unfavorable.
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$43,000 unfavorable.
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