1.

Tuscarora, Inc., a merchandising company, has the following budgeted figures:

?	Jan	Feb	Mar	April
Sales	$57,300	$60,000	$83,000	$98,000
Cost of goods sold	50% of sales	?	?	?
Required ending inventory	$10,000 + 30% of next month's sales	?	?	?
Inventory on hand on Jan 1	$30,000	?	?	?

Calculate the budgeted purchases for the month of January.

Select one:

A. $56,650

B. $26,650

C. $28,000

D. $650

2.

Apogee Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead allocated to production based on direct labor hours (DLHr).

Actual fixed overhead	$38,000
Budgeted fixed overhead	$24,000
Standard overhead allocation rate	$9
Standard direct labor hours per unit	4 DLHr
Actual output	2200 units

Select one:

A. $79,200

B. $24,000

C. $19,800

D. $38,000

3.

The Body Balance Fitness Company completed the flexible budget analysis for the second quarter, which is given below.

?	Actual Results	Flexible Budget Variance	?	Flexible Budget	Sales Volume Variance	?	Static Budget
Units	12,800	0	?	12,800	1000	F	11,800
Sales Revenue	$62,770	$2391	U	$65,161	$5091	F	$60,070
Variable Costs	27,540	150	U	27,390	$2140	U	25,250
Contribution Margin	$35,230	$2541	U	$37,771	$2951	F	$34,820
Fixed Costs	34,280	270	U	34,010	$0	?	34,010
Operating Income/(loss)	$950	$2811	U	$3761	$2951	F	$810

Which of the following statements would be a correct factor to explain the flexible budget variance for variable costs?

Select one:

A. decrease in sales price per unit

B. increase in variable cost per unit

C. increase in sales volume

D. increase in fixed costs