12.

Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance.

Direct labor standard (2 hrs. @ $13.20/hr.)	$	26.40		per finished unit
Actual direct labor hours		94,500		hrs.
Budgeted units		48,500		units
Actual finished units produced		46,500		units
Standard variable OH rate (2 hrs. @ $15.00/hr.)	$	30.00		per finished unit
Standard fixed OH rate ($496,800/54,000 units)	$	9.20		per unit
Actual cost of variable overhead costs incurred	$	1,388,000
Actual cost of fixed overhead costs incurred	$	500,000

Multiple Choice

• $22,000 favorable.

• $72,200 favorable.

• $72,200 unfavorable.

• $22,000 unfavorable.

• $15,000 unfavorable.

13.

A company provided the following direct materials cost information. Compute the total direct materials cost variance.

Standard costs assigned:
Direct materials standard cost (406,000 units @ $3.00 / unit)	$	1,218,000
Actual costs:
Direct Materials costs incurred (404,750 units @ $3.20 / unit)	$	1,295,200

Multiple Choice

• $3,750 Favorable.

• $77,200 Favorable.

• $77,200 Unfavorable.

• $80,950 Unfavorable.

• $80,950 Favorable.

14.

The following company information is available. The direct materials quantity variance is:

Direct materials used for production	36,000 gallons
Standard quantity for units produced	34,100 gallons
Standard cost per gallon of direct material	$9.00
Actual cost per gallon of direct material	$9.10

Multiple Choice

• $20,700 unfavorable.

• $11,000 unfavorable.

• $17,100 unfavorable.

• $20,700 favorable.

• $11,000 favorable.

15.

Product A has a sales price of $20 per unit. Based on a 12,000-unit production level, the variable costs are $12 per unit and the fixed costs are $7 per unit. Using a flexible budget for 14,500 units, what is the budgeted operating income from Product A?

Multiple Choice

• $14,500.

• $50,000.

• $78,000.

• $32,000.

• $84,000.