8) Information on Fleming Company's direct material costs follows:

Actual amount of direct materials purchased and used 20,000

kilogramsActual direct material costs $44,000

Actual amount of direct materials used 19,000

Standard price of direct materials $2.10 per kilogram

Direct materials quantity variance-favourable $3,000

What was the company's direct material price variance?

12) Compton Company uses a predetermined overhead rate in applying overhead to production orders on a direct labour cost. Estimates from the beginning of the year and actuals for the year follow:

Estimates Actuals

Direct labour cost $56,000 $59,000

Manufacturing overhead $67,200 $48,000

Direct labour hours 8,000 9,000

Machine hours 12,000 15,000

Job 709 was completed on June 1. It required the following resources: $300 in DM, $640 in DL, 35 DLH and 145 MH. What was the cost of Job 709?

14) Comparative income statements for Boggs Sporting Equipment Company for the last two months are presented below:

July August

Sales in Units 11,000 10,000

Sales Revenue $165,000 $150,000

Less: Cost of Good Sold 72,600 66,000

Gross Margin 92,400 84,000

Less: Operating Expenses

Rent 11,250 12,000

Sales Commissions 13,950 12,000

Clerical Expenses 16,000 15,000

Maintenance Expenses 13,500 13,000

Total Operating Expenses 54,700 52,000

Operating Income 37.700 32,000

What is the behaviour of sales commissions?