1) Jamesway corporation has two seperate divisions that operate as profit centers. The following information is available for the most recent year.

White Division Grey Division

Sales $120,000 $240,000 Salary Expense $16,800 $28,800 Cost of Goods Sold $60,000 $90,000

The White Division occupies 15,000 square feet in the plant. The Grey division occupies 25,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000.

Grey's departmental income is...?

$125,000 $102,000 $24,450 $89,950 $150,000

2) Five Rings, Inc, has collected the following data on one of its products

Direct materials standard (4 lbs @ $1/b.) $4 per finished unit Total direct materials cost variance - unfavorable $10,150 Actual direct materials used $112,500 lbs Actual finished units produced $22,500 units

The direct materials quantity variance is:

$22,500 favorable $10,150 unfavorable $12,350 favorable $22,500 unfavorable $10,150 favorable 3) Use the following data to find the direct labor rate variance

Direct labor standard (4.5 hrs. @ 6/hr.) $27.00 per finished unit Actual hours worked per unit 4.0 hours Actual units produced 4,000 units Actual rate per hour 6.25 per hour

$4,000 unfavorable $4,000 favorable $16,000 favorable $16,000 favorable $16,000 unfavorable

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 budgeed operating income from Product A?

$30,000 $25,000 $20,000 $25,000 $12,500

Explanations please! Anyone with explanations (work) wll get best Answer! Thank you!