36.

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

	Actual Results				Flexible Budget				Planning Budget
Flights (q)		52				?				?
Expenses:
Wages and salaries ($4,000 + $88.00q)	$	8,415				?			$	8,400

What is the spending variance for wages and salaries expense?

Multiple Choice

• $161 F

• $176 F

• $176 U

• $161 U

37.

Assume the following:

• The standard price per pound is $3.00.
• The actual quantity of materials purchased and used in production is 63,200 pounds.
• The actual purchase price per pound of materials was $3.10.

What is the materials price variance?

Multiple Choice

• $6,320 U

• $6,320 F

• $3,160 F

• $3,160 U

38.

Assume the following (1) sales = $200,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 34%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

• The break-even point is 8,438 units

• The total contribution margin = $68,000

• The variable expense per unit = $6.80

• The total fixed expenses = $132,000

39.

Assume the following (1) variable expenses = $315,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 25%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

• The variable expense ratio is 300%

• The total fixed expenses = $78,750

• The total sales = $420,000

• The total contribution margin = $236,250

40.

Assume the following:

• The standard labor rate per hour is $17.25.
• The standard labor-hours allowed per unit of finished goods is 3 hours.
• The actual quantity of labor hours worked during the period was 43,300 hours.
• The total actual direct labor cost for the period was $726,000.
• The company produced 15,000 units of finished goods during the period.

What is the labor efficiency variance?

Multiple Choice

• $20,925 U

• $29,325 F

• $29,325 U

• $20,925 F