71. Assume the following information:

	Amount				Per Unit
Sales	$	300,000				$	40
Variable expenses		112,500					15
Contribution margin		187,500				$	25
Fixed expenses		52,000
Net operating income	$	135,500

The dollar sales to attain a target profit of $211,000 is:

Multiple Choice

• $346,500.

• $701,333.

• $435,500.

• $420,800.

72.

Assume a companys sales budget for July estimates 15,300 units sold. The variable selling and administrative expense used for budgeting purposes is $5.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $122,000. The total fixed selling and administrative expenses included in the selling and administrative expense budget for July is $90,000. What is the amount of depreciation included in the selling and administrative expense budget for July?

Multiple Choice

• $46,300

• $11,700

• $13,500

• $44,500

73.

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	$	11.10	per pound	$	55.50
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 quantity variance?

Multiple Choice

• $5,550 U

• $5,250 U

• $5,550 F

• $5,250 F

74.

Assume the following:

• The standard price per pound is $2.10.
• The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
• The actual quantity of materials purchased and used in production is 50,700 pounds.
• The actual purchase price per pound of materials was $2.25.
• The company actually produced 13,000 units of finished goods during the period; however, its planning budget was based on 12,800 units.

What is the materials quantity variance?

Multiple Choice

• $2,925 F

• $2,925 U

• $2,730 F

• $1,050 F

75.

Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed)		$3,000
Supplies (variable)		$4.00	q
Utilities (mixed)		$150 + $0.75	q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,885 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?

Multiple Choice

• $200 U

• $460 F

• $200 F

• $460 U