A company's flexible budget for 14,000 units of production showed per unit contribution margin of $3.90 and fixed costs, $25,000. The operating income expected if the company produces and sells 20,000 units is:

Multiple Choice

• $53,000.

• $9,000.

• $78,000.

• $29,600.

• $25,000.

• Cavern Company's output for the current period results in a $6,200 unfavorable direct material price variance. The actual price per pound is $56.00 and the standard price per pound is $54.00. How many pounds of material are used in the current period?

  Multiple Choice

• 6,200.

• 9,300.

• 3,100.

• 2,989.

• 9,189.

• Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance.

  Direct materials standard (6 lbs. @ $2/lb.)	$	12		per finished unit
  Actual direct materials used		255,100		lbs.
  Actual finished units produced		42,000		units
  Actual cost of direct materials used	$	507,750

  Multiple Choice

• $2,450 unfavorable.

• $3,750 unfavorable.

• $2,450 favorable.

• $6,200 unfavorable.

• $3,750 favorable.

• A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $25,000 indicates that Dept. Y had a direct wage expense of $3,200 and Dept. Z had a direct wage expense of $5,300. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:

  Multiple Choice

• $11,450; $13,550.

• $13,550; $11,450.

• $12,500; $12,500.

• $3,200; $5,300.

• $8,250; $8,250.