1)A companys flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The variable costs expected if the company produces and sells 16,000 units is:

Multiple Choice

$48,000.

$64,000.

$40,000.

$24,000.

$18,000.

2)A companys flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The contribution margin expected if the company produces and sells 16,000 units is:

Multiple Choice

$48,000.

$64,000.

$40,000.

$24,000.

3) =

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassocks labor efficiency variance for August?

Multiple Choice

$12,480 favorable.

$10,376 unfavorable.

$14,584 unfavorable.

$4,160 favorable.

$12,480 unfavorable.

4)=

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $7/hr.)	$	28	per unit
Actual hours worked		12,250
Actual rate per hour	$	7.50

Multiple Choice

$6,125 unfavorable.

$7,000 unfavorable.

$7,000 favorable.

$12,250 favorable.

$6,125 favorable.