1.)

Based on a predicted level of production and sales of 29,000 units, a company anticipates total variable costs of $113,100, fixed costs of $29,000, and operating income of $203,580. Based on this information, the budgeted amount of fixed costs for 26,000 units would be:

Multiple Choice

• $159,400.

• $232,580.

• $29,000.

• $113,100

• $101,400

2.)

Product A has a sales price of $21 per unit. Based on a 12,000-unit production level, the variable costs are $9 per unit and the fixed costs are $8 per unit. Using a flexible budget for 14,500 units, what is the budgeted operating income from Product A?

Multiple Choice

• $14,500.

• $78,000.

• $96,000.

• $22,500.

• $52,500.

3.)

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:

Direct materials standard (7 kg. @ $2.50/kg)	$17.50	per finished unit
Actual cost of materials purchased	$423,500
Actual direct materials purchased and used	160,000	kg

Multiple Choice

• $14,000 unfavorable.

• $37,500 unfavorable.

• $37,500 favorable.

• $23,500 unfavorable.

• $23,500 favorable.

4.)

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

Direct materials standard (3 lbs @ $1/lb)	$3	per finished unit
Total direct materials cost varianceunfavorable	$19,250
Actual direct materials used	140,000	lbs.
Actual finished units produced	35,000	units

Multiple Choice

• $15,750 favorable.

• $35,000 unfavorable.

• $35,000 favorable.

• $19,250 unfavorable.

• $19,250 favorable.

5.)

Grant Co. uses the following standard to produce a single unit of its product: Variable overhead (1.40 hrs. per unit @ $3.90/hr.) Actual data for the month show total variable overhead costs of $150,260, and 26,000 units produced. The total variable overhead variance is:

Multiple Choice

• $8,300F.

• $8,300U.

• $76,900U.

• $76,900F.

• $0.