26.

Assume the following information appears in the standard cost card for a company that makes only one product:

	Standard Quantity or hours		Standard Price or Rate			Standard Cost
Direct materials	5	pounds	$	11.70	per pound	$	58.50
Direct labor	2	hours	$	17.00	per hour	$	34.00
Variable manufacturing overhead	2	hours	$	3.00	per hour	$	6.00

During the most recent period, the following additional information was available:

• 20,000 pounds of material was purchased at a cost of $10.50 per pound.
• All of the material that was purchased was used to produce 3,900 units.
• 8,000 direct labor-hours were recorded at a total cost of $132,000.

What is the direct materials spending variance?

Multiple Choice

• $18,150 U

• $5,850 U

• $18,150 F

• $5,850 F

27.

Assume that a company provided the following excerpts of information from its flexible budget performance report:

	Actual Results				Flexible Budget				Planning Budget
Flights (q)		55				?				50
Revenue ($250.00q)	$	11,550			$	?			$	?

What amount of revenue would appear in the companys flexible budget?

rev: 06_25_2020_QC_CS-208650

Multiple Choice

• $13,050

• $13,750

• $13,150

• $12,500