2. Butler Company developed a static budget at the beginning of the company's accounting period based on an expected volume of 8,000 units:

	Per unit
Revenue	$8.00
Variable costs	3.50
Contribution margin	$4.50
Fixed costs	3.00
Net income	$1.50

If actual production totals 9,000 units which is within the relevant range, the flexible budget would show fixed costs of?

3. CraftMade Company expects to produce 31,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:

ACTIVITIES:	UNIT	BATCH	PRODUCT	FACILITY
	LEVEL	LEVEL	LEVEL	LEVEL
Cost	$75,000	$22,400	$24,000	$279,000
Cost Driver	5,000 labor hrs	140 set ups	% of use	31,000 units

Production of 2,000 units of an auto towing tool required 500 labor hours, 17 setups, and consumed 30 % of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?

5. Silver Streak Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 800,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000 of which $70,000 are fixed costs. What is the amount of contribution margin per unit?

6. Home Town Grocery has invested in a yogurt stand for its store. The investment cost the company $100,000. Variable materials, preparation, and marketing costs are expected to be $1.30 per unit and fixed costs are estimated at $7,400 a year. If actual sales were 21,400 servings, what would the ROI be using the sales price of $2.40?

7. The work in process account for Chambers Company contained the following entries: Debit of $80,000 for direct raw materials Debit of $120,000 for direct labor Debit of $60,000 for manufacturing overhead Ending balance, $84,000, associated with Job #2 The company uses a job-order cost system. Work was only performed on two jobs during the period. The beginning balance in work in process was zero. What was the cost of Job #1, which was started and completed during the period?

8. Starlight Company's static budget is based on a planned activity level of 57,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 52,000 units and one based on 62,000. The company actually produced and sold 61,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets?