1)

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.8 grams	$7.00 per gram	$33.60
Direct labor	1.1 hours	$13.00 per hour	$14.30
Variable overhead	1.1 hours	$8.00 per hour	$8.80

The company reported the following results concerning this product in June.

Originally budgeted output	6,200	units
Actual output	6,100	units
Raw materials used in production	28,420	grams
Actual direct labor-hours	4,900	hours
Purchases of raw materials	32,200	grams
Actual price of raw materials purchased	$7.10	per gram
Actual direct labor rate	$13.90	per hour
Actual variable overhead rate	$7.70	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

$3,220 U

$2,858 F

$2,858 U

$3,220 F

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2)

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.5 grams	$5.00 per gram	$22.50
Direct labor	0.8 hours	$10.00 per hour	$8.00
Variable overhead	0.8 hours	$5.00 per hour	$4.00

The company reported the following results concerning this product in June.

Originally budgeted output	6,700	units
Actual output	6,600	units
Raw materials used in production	28,390	grams
Actual direct labor-hours	4,600	hours
Purchases of raw materials	31,900	grams
Actual price of raw materials purchased	$5.10	per gram
Actual direct labor rate	$10.90	per hour
Actual variable overhead rate	$4.70	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for June is:

$6,550 U

$6,681 F

$6,550 F

$6,681 U

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3)

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,400. The BAJ Division's divisional segment margin is $84,600 and the CBB Division's divisional segment margin is $49,100. What is the amount of the common fixed expense not traceable to the individual divisions?

$97,000

$121,300

$61,500

$133,700

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4)

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$137
Units in beginning inventory	0
Units produced	3,300
Units sold	2,820
Units in ending inventory	480
Variable cost per unit:
Direct materials	$49
Direct labor	$16
Variable manufacturing overhead	$7
Variable selling and administrative	$16
Fixed costs:
Fixed manufacturing overhead	$99,000
Fixed selling and administrative expenses	$33,840

The total gross margin for the month under absorption costing is:

$98,700

$19,740

$127,380

$138,180

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5)

A company that produces a single product had a net operating income of $77,000 using variable costing and a net operating income of $98,840 using absorption costing. Total fixed manufacturing overhead was $52,020 and production was 10,200 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level: (Do not round intermediate computation and round your final answer to nearest whole number.)

decreased by 21,840 units

increased by 21,840 units

decreased by 4,282 units

increased by 4,282 units

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6)

Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,400. The BAJ Division's divisional segment margin is $84,600 and the CBB Division's divisional segment margin is $49,100. What is the amount of the common fixed expense not traceable to the individual divisions?

$97,000

$121,300

$61,500

$133,700

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7)

Insider Corporation has two divisions, J and K. During March, the contribution margin in Division J was $36,000. The contribution margin ratio in Division K was 40%, its sales were $131,000, and its segment margin was $38,000. The common fixed expenses in the company were $46,000, and the company's net operating income was $21,000. The segment margin for Division J was:

$29,000

$38,000

$8,000

$67,000