1.Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: Direct materials standard (7 kg. @ $2.20/kg.) $15.40 per finished unit Actual cost of materials purchased $361,700 Actual direct materials purchased and used 154,000 kg.

$23,300 unfavorable.

$22,900 favorable.

$46,200 favorable.

$46,200 unfavorable.

$22,900 unfavorable.

2.Henderson Co. has fixed costs of $33,000 and a contribution margin ratio of 22%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

7%.

50%.

25%.

33%.

75%.

3.

Urban Company reports the following information regarding its production cost:

Units produced	24,000 units
Direct labor	$17 per unit
Direct materials	$22 per unit
Variable overhead	$224,000 in total
Fixed overhead	$114,000 in total

Compute production cost per unit under variable costing.

rev: 10_13_2015_QC_CS-29570

$17.00

$22.00

$39.00

$43.75

$48.33

4.

Use the following information to determine the margin of safety in dollars:

Unit sales	55,000 Units
Dollar sales	$550,000
Fixed costs	$209,216
Variable costs	$198,000

$326,900.

$142,784.

$122,784.

$223,100.

$550,000.

5.

During its most recent fiscal year, Raphael Enterprises sold 250,000 electric screwdrivers at a price of $16.50 each. Fixed costs amounted to $625,000 and pretax income was $875,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$2,000,000.

$2,625,000.

$4,125,000.

$1,500,000.

$3,250,000.

6.

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. @ $7.10/hr.)	$28.40 per unit
Actual hours worked	12,350
Actual rate per hour	$7.70

$11,715 favorable.

$7,410 unfavorable.

$8,400 unfavorable.

$7,410 favorable.

$8,400 favorable.