Alphonse Company manufactures staplers. The budgeted sales price is $14.00 per stapler, the variable costs are $3.00 per stapler, and budgeted fixed costs are $12,000. What is the budgeted operating income for 4,000 staplers?

A. $12,000

B. $56,000

C. $32,000

D. $44,000

2)

Devon Company has collected the following data for one of its products:

Direct materials standard (4 pounds @ $1/lb.)	$4 per unit
Direct materials flexible budget varianceunfavorable	$14,500
Actual direct materials used	101,000 pounds
Actual units produced	22,000 units

What is the direct materials efficiency variance?

A. $22,000 F

B. $22,000 U

C. $13,000 F

D. $13,000 U

3)

Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.

Actual fixed overhead	$38,000
Budgeted fixed overhead	$22,000
Standard overhead allocation rate	$9
Standard direct labor hours per unit	4 DLHr
Actual output	2,100 units

A. $53,600 U

B. $18,900 U

C. $18,900 F

D. $53,600 F

The management of Earth Barber Lawnmowers has calculated the following variances:

Direct materials cost variance	$11,000 U
Direct materials efficiency variance	35,000 F
Direct labor cost variance	15,000 F
Direct labor efficiency variance	14,000 U
Variable overhead cost variance	2,500 F
Variable overhead efficiency variance	5,500 F
Fixed overhead cost variance	3,500 F
Fixed overhead volume variance	2,500 F

When determining the total product cost flexible budget variance, what is the total fixed overhead variance of the company?

A. $8,500 F

B. $5,500 F

C. $3,500 F

D. $9,000 F