1. Assume the following information:

	Amount				Per Unit
Sales	$	600,000			$	40
Contribution margin	$	360,000			$	24
Net operating income	$	240,000

If the selling price per unit increases by 11% and unit sales drop by 3%, then the best of estimate of the new net operating income is:

Multiple Choice

• $283,220.

• $263,220.

• $273,220.

• $293,220

2.

Assume that a companys planned level of activity was 2,000 units and its actual level of activity was 2,100 units. The revenue variance was $1,200 unfavorable and the revenue activity variance was $8,600 unfavorable. What budgeted revenue per unit does the company use for creating its planning and flexible budgets?

Multiple Choice

• $82 per unit

• $76 per unit

• $86 per unit

• $52 per unit

3.

Assume that a company provided the following excerpts of information from its flexible budget performance report:

	Actual Results				Flexible Budget				Planning Budget
Flights (q)		55				?				50
Revenue ($160.00q)	$	11,550			$	?			$	?

What amount of revenue would appear in the companys flexible budget?

Multiple Choice

• $8,280

• $8,800

• $8,380

• $8,000

4.

Assume the following:

• The standard price per pound is $2.20.
• The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
• The actual quantity of materials purchased was 53,000 pounds, whereas the quantity of materials used in production was 50,900 pounds.
• The actual purchase price per pound of materials was $2.25.
• The company produced 13,000 units of finished goods during the period.

Multiple Choice

• $4,725 F

• $4,620 F

• $2,475 F

• $2,420 F

5.

Assume that a companys budgeted revenue per unit is $50. The companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. Its actual revenue was $101,000. The companys revenue variance is:

Multiple Choice

• $9,000 U.

• $7,000 U.

• $9,000 F.

• $7,000 F.