1. Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $16 per hour. During August, Hassock produced 14,900 units and used 60,170 hours of direct labor at a total cost of $960,720. What is Hassocks labor efficiency variance for August?

• $9,120 unfavorable.

• $7,120 unfavorable.

• $4,000 favorable.

• $9,120 favorable.

• $11,120 unfavorable.

2. Based on a predicted level of production and sales of 23,000 units, a company anticipates total contribution margin of $94,300, fixed costs of $23,000, and operating income of $71,300. Based on this information, the budgeted operating income for 20,000 units would be?

• $71,300.

• $59,000.

• $42,550.

• $94,300.

3. Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?

• $25,000.

• $30,000.

• $20,000.

• $12,500.

• $35,000.

• $117,300.

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

Direct materials standard (7 kg. @ $2.35/kg.)	$16.45	per finished unit
Actual cost of materials purchased	$392,150
Actual direct materials purchased and used	157,000	kgs.

• $42,300 unfavorable.

• $23,200 unfavorable.

• $23,200 favorable.

• $42,300 favorable.

• $19,100 unfavorable.

5. A company's flexible budget for 11,000 units of production reflects sales of $319,000; variable costs of $99,000; and fixed costs of $93,500. Calculate the expected level of operating income if the company produces and sells 14,000 units.

• $161,000.

• $126,500.

• $186,000.

• $186,500.

• $74,000.