1.

Use the following data to find the direct labour cost variance.

Direct labour standard (4 hr. @ $7/hr.)	$28 per unit
Actual hours worked per unit	3.5
Actual units produced	3,500
Actual price per hour	$7.50

Select one:

a. $ 6,125 unfavourable.

b. $ 7,000 unfavourable.

c. $ 7,000 favourable.

d. $12,250 favourable.

e. $ 6,125 favourable.

2.

The following information is available for ABC Corporation:

Direct material used for production, 18,000 litres Standard quantity for units produced, 17,200 litres Standard cost per litre of direct material, $5.40 Actual cost per litre of direct material, $5.50

The direct material quantity variance is:

Select one:

a. $4,320 unfavourable.

b. $4,000 unfavourable.

c. $6,120 unfavourable.

d. $4,320 favourable.

e. $6,120 favourable.

3.

The following information is available for a company for January:

Direct materials used, 25,000 metres @ $5.50 per metre Standard costs for direct materials for January production, 26,000 metres @ $5.30 per metre

The direct material price variance is:

Select one:

a. $5,000 favourable.

b. $ 300 favourable.

c. $5,200 unfavourable.

d. $5,000 unfavourable.

e. $5,200 favourable.

4.

A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The net income you would expect the company to earn if it produces and sells 15,000 units is:

Select one:

a. $ -0-.

b. $14,000.

c. $17,500.

d. $21,500.

e. $26,000.