Assume that a company provided the following cost formulas for three of its expenses (where a refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $3,000 $4.709 $150 + $0.750 The company's planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget? Multiple Choice $8,995 O $9.400 $8.695 $10305 Assume that a company provided the following excerpts of Information from its flexible budget performance report: Actual Results 52 Flexible Planning Budget Budget 2 ? Flights (9) Expenses: Wages and salaries ($4,000 + $88.00) $8,460 ? $8,400 What is the spending variance for wages and salaries expense? Multiple Choice O $16U $176 F 0 $16F $176 U Assume the following information appears in the standard cost card for a company that makes only one product: Direct materials Direct labor Variable manufacturing overhead Standard Quantity or hours 5 pounds 2 hours 2 hours Standard Price or Rate $11.55 per pound $17.00 per hour $ 3.00 per hour Standard Cost $57.75 $34.00 $ 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 O $5.250 U $5,775 F Assume that a company manufactures and sells a variety of products, one of which it refers to as Product A. The company is considering dropping Product A because the income statement for this product is reporting a net operating loss as shown below. $500,000 $240,000 75,000 25,000 340,000 160,000 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Salary of product-line manager Advertising for this product General factory overhead Depreciation on equipment Insurance on this product's inventories Purchasing department Total fixed expenses Net operating loss $ 65,000 35,000 25,000 20,000 8,000 15,000 168,000 $ (8,000) If Product A is dropped, the company would transfer its product-line manager to another department and discontinue a search for a new manager that the company anticipated paying a salary of $47,500. The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A? Murple Choice ster duct-line manager to another department and discontinue a search for a new manager that the company anticipated paying a salary of $47,500. The general factory overhead and purchasing department expenses are common costs that the company allocates to all of its products using total sales dollars as the allocation base. The equipment used to manufacture Product A does not wear out through use and it has no resale value. What is the financial advantage (disadvantage) of dropping Product A? Multiple Choice O $169,500) $(29,500) $149,500) $8,000