1.

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced	6,900
Variable costs per unit:
Direct materials	$51
Direct labor	$45
Variable manufacturing overhead	$4
Variable selling and administrative expense	$7
Fixed costs:
Fixed manufacturing overhead	$227,700
Fixed selling and administrative expense	$531,300

There were no beginning or ending inventories. The absorption costing unit product cost was:

$96 per unit

$133 per unit

$100 per unit

$217 per unit

2.

The following materials standards have been established for a particular product:

Standard quantity per unit of output	4.3	grams
Standard price	$14.00	per grams

The following data pertain to operations concerning the product for the last month:

Actual materials purchased	3,200	grams
Actual cost of materials purchased	$ 37,280
Actual materials used in production	2,500	grams
Actual output	510	units

The direct materials purchases variance is computed when the materials are purchased.

Required:

a.

What is the materials price variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

b.

What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

3.

The following standards for variable overhead have been established for a company that makes only one product:

Standard hours per unit of output	6.6	hours
Standard variable overhead rate	$13.00	per hour

The following data pertain to operations for the last month:

Actual hours	9,800	hours
Actual total variable overhead cost	$125,210
Actual output	1,460	units

Required:

a.

What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

b. What is the variable overhead efficiency variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

4. accounting system appear below:

Sales	$930,000
Variable expenses	$378,000
Fixed manufacturing expenses	$360,000
Fixed selling and administrative expenses	$240,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $213,000 of the fixed manufacturing expenses and $174,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped?

Overall net operating income would decrease by $48,000.

Overall net operating income would increase by $48,000.

Overall net operating income would increase by $165,000.

Overall net operating income would decrease by $165,000.