1. The following performance report was prepared for Dale Manufacturing for the month of April.

Actual Results Static Budget Variance

Sales units 100,000 80,000 20,000F Sales dollars $190,000 $160,000 $30,000F Variable costs 125,000 96,000 29,000U Fixed costs 45,000 40,000 5,000U Operating income $ 20,000 $ 24,000 $ 4,000U

Using a flexible budget, Dales total sales-volume variance is:

a. $6,000 F b. $16,000 F c. $4,000 d. $20,000 U

2. MinnOil performs oil changes and other minor maintenance services (e.g., tire pressure checks) for cars. The company advertises that all services are completed within 15 minutes for each service. On a recent Saturday, 160 cars were serviced resulting in the following labor variances: rate, $19 unfavorable; efficiency, $14 favorable. If MinnOils standard labor rate is $7 per hour, determine the actual wage rate per hour and the actual hours worked. Wage Rate Hours Worked.

a. $7.45---42.00 b. $7.50---38.00 c. $6.55---42.00 d. $6.67---42.71

3. Frisco Company recently purchased 108,000 units of raw material for $583,200. Three units of raw materials are budgeted for use in each finished good manufactured, with the raw material standard set at $16.50 for each completed product. Frisco manufactured 32,700 finished units during the period just ended and used 99,200 units of raw material. If management is concerned about the timely reporting of variances in an effort to improve cost control and bottom-line performance, the materials purchase price variance should be reported as:

a. $9,920 F b. $6,050 U c. $10,800 F d. $10,800 U

4. Lee Manufacturing uses a standard cost system with overhead applied based on direct labor hours. The manufacturing budget for the production of 5,000 units for the month of May included the following information.

Direct labor (10,000 hours at $15 per hour) $150,000 Variable overhead $30,000 Fixed overhead $80,000

During May, 6,000 units were produced and the direct labor efficiency variance was $1,500 unfavorable. Based on this information, the actual number of direct labor hours used in May was:

a. 9,900 hours b. 11,900 hours c. 10,100 hours d. 12,100 hours

5. A company had a total labor variance of $15,000 favorable and a labor efficiency variance of $18,000 unfavorable. The labor price variance was:

a. $3,000 U b. $33,000 U c. $33,000 F d. $3,000 F

6. Lee manufacturing uses a standard cost system with overhead applied based on direct labor hours. The manufacturing budget for the production of 5,000 units for the month of June included 10,000 hours of direct labor at $15 per hour, $150,000. During June, 4,500 units were produced, using 9,600 direct labor hours, incurring $39,360 of variable overhead, and showing a variable overhead efficiency variance of $2,400 unfavorable. The standard variable overhead rate per direct labor hour was:

a.$6.00 b. $4.10 c.$3.85 d. $4.00