1.The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemploymentrate was lower a year ago. Which variance is directlyimpacted?

a.Materials pricevariance

b.Materials efficiencyvariance

c.Labour pricevariance

d.Labour efficiencyvariance

2.Thomas Corporation produces stopwatches. According to company standards, it should take 1 hour of direct labour to produce a stopwatch. Thomas' standard labour cost is $18 per hour. DuringJune, Thomas produced 5,000 stopwatches and used 5,150 hours of direct labour at a total costof

$102,500. What is Thomas' direct labour price variance for June?

a.$9,800favourable

b.$9,515unfavourable

c.$9,515favourable

d.$9,800unfavourable

3.Which of the following best describes a "relevantcost"?

a.A factor that restricts production or sales of aproduct

b.Cost of developing, producing, and delivering a product orservice

c.Expected future costs that differs amongalternatives

d.Costs that were incurred in the past and cannot bechanged

Use the information below to answer the following question(s):

Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production:

Sale price per unit

$250

Variable costs per unit:

Manufacturing

$165

Marketing and administrative

$50

Total fixed costs:

Manufacturing

$750,000

Marketing and administrative

$200,000

4.If Clear Sky Sailmakers accepts a special order for 5,000 sails at a price of $225 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regularsales are not affected by the specialorder.)

a.Increase by $1,125,000

b.Increase by $50,000

c.Decrease by$50,000

d.Increase by$150,000

5.If Clear Sky Sailmakers accepts a special order for 3,000 sails at a price of $215 per unit, fixedcosts remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assume regular sales are not affected by the specialorder.)

a.Increase by $50,000

b.Increase by $150,000

c.Increase by $0

d.Decrease by$50,000

Use the information below to answer the following question(s).

Western Technologies Inc. produces dashboard displays. Actual fixed manufacturing overhead is the same as the budgeted amount, $687,500. Production in September increased by 10% over the previous month's production. August production was 25,000 displays. The production level is the same as the budgeted denominator level. At the end of September, 2,000 displays remained in stock. In August, all of the displays were sold by the end of the month and there was no remaining work in process inventory.

6.What are Western Technologies' appropriate period costs for September if variable costing isused? a. $668,380

b. $726,500

c. $632,500

d. $687,500

e. $637,500

7.What is the Western Technologies' September cost of goods sold amount if absorption costingis used?

a. $668,380

b. $726,500

c. $632,500

d. $687,500

e. $637,500