1

Based on a predicted level of production and sales of 33,000 units, a company anticipates total contribution margin of $102,300, fixed costs of $66,000, and operating income of $36,300. Based on this information, the budgeted operating income for 30,000 units would be:

2.

Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period.

Direct labor standard (4.00 hrs. @ $7.05/hr.)	$	28.20	per unit
Actual hours worked		12,200
Actual rate per hour	$	7.60

3.

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor rate variance.

Direct labor standard (2 hrs. @ $12.75/hr.)	$	25.50		per finished unit
Actual direct labor hours		72,100		hrs.
Actual finished units produced		35,000		units
Actual cost of direct labor	$	972,500

4.

Claymore Corp. has the following information about its standards and production activity for September. The controllable variance is:

Actual total factory overhead incurred	$	22,740
Standard factory overhead:
Variable overhead	$	7.00		per unit produced
Fixed overhead
($8,640/3,200 estimated units to be produced)	$	2.70		per unit
Actual units produced		1,800		units