1) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information.

Revenue Center Performance Report
	Actual	Flexible Budget		Flexible	Sales Volume		Static
Product type:	Sales Revenue	Variance	U/F	Budget	Variance	U/F	Budget
40 inch	$31,500			$30,000			$40,000
36 inch long	$40,150			$42,000			$33,000
36 inch short	$36,200			$33,000			$30,000
32 inch	$19,000			$20,000			$28,000

How much is the flexible budget variance for the 40 inch pipe?

A) $1,850 U

B) $3,000 F

C) $10,000 U

D) $1,500 F

2) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report.

Revenue Center Performance Report
	Actual	Flexible Budget		Flexible	Sales Volume		Static
Product type:	Sales Revenue	Variance	U/F	Budget	Variance	U/F	Budget
40 inch	$31,500			$30,000			$40,000
36 inch long	$40,150			$42,000			$33,000
36 inch short	$36,200			$33,000			$30,000
32 inch	$19,000			$20,000			$28,000

The company uses management by exception to address flexible budget variances. On which variance would the company focus first?

A) 40 inch

B) 36 inch long

C) 36 inch short

D) 32 inch

3) Chesapeake Company provided the following manufacturing costs for the month of June.

Direct labor cost	$136,000
Direct materials cost	80,000
Equipment depreciation (straight-line)	24,000
Factory insurance	19,000
Factory manager's salary	12,800
Janitor's salary	5,000
Packaging costs	18,800
Property taxes	16,000

From the above information, calculate Chesapeakes total variable costs.

A) $311,600

B) $62,300

C) $234,800

D) $38,400

4) Da Silva Company has variable costs of $0.60 per unit of product. In August, the volume of production was 24,000 units and units sold were 20,000. The total production costs incurred were $31,900. What are the fixed costs per month?

A) $17,500

B) $19,900

C) $9,600

D) $14,400