9-

Which of the following statements is true?

Select one:

A static budget enables managers plan for various levels.

Unfavorable variances decrease operating income.

Favorable variances increase operating expenses.

A strategic budget enables managers plan for short term period.

Sales volume variance reflects the change in sales price.

10-

The following is a part of the flexible budget performance report for K-Town constructions Co.

	Actual results	Flexible budget	Static budget
Units	100,000 units	100,000 units	110,000 units
Sales revenues	$ 215,000	?	$ 247,500
Variable expenses	$ 120,000	?	$ 121,000
Fixed expenses	$ 30,000	?	$ 33,000

Fixed expenses for flexible budget should equal to:

Select one:

$ 33,000

$ 33,057

$ 30,000

$ 40,000

$ 36,363

11-

Which of the following will result in an unfavorable direct materials efficiency variance?

Select one:

The actual quantity of direct materials used per unit was equal to the standard quantity of direct materials allowed per unit.

The actual cost per unit of direct materials was less than the standard cost of direct materials.

The actual quantity of direct materials used per unit exceeded the standard quantity of direct materials allowed per unit.

The actual quantity of direct materials used per unit was less than the standard quantity of direct materials allowed per unit.

The actual cost per unit of direct materials exceeded the standard cost of direct materials.