At24000direct labor hours, the flexible budget for indirect materials is $36000. If $39400are incurred at24400direct labor hours, the flexible budget report should show the following difference for indirect materials:

$3400unfavorable.

$2800favorable.

$3400favorable.

$2800unfavorable.

At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At15000direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $120000. Fixed and variable costs may be expressed as:

$30000fixed plus $8per direct labor hour variable.

$90000fixed plus $2per direct labor hour variable.

$30000fixed plus $6per direct labor hour variable.

$90000fixed plus $6per direct labor hour variable.

In theBramble Corp., indirect labor is budgeted for $75000and factory supervision is budgeted for $44000at normal capacity of150000direct labor hours. If170000direct labor hours are worked, flexible budget total for these costs is

$119000.

$134867.

$124867.

$129000.

Vaughn Manufacturinguses flexible budgets. At normal capacity of25000units, budgeted manufacturing overhead is $200000variable and $360000fixed. IfVaughnhad actual overhead costs of $590000for30000units produced, what is the difference between actual and budgeted costs?

$30000favorable

$10000unfavorable

$40000favorable

$10000favorable

Betsy Union is theSheffield Corp.manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin forSheffield Corp.is32000. Its current operating assets total $210000. The division is considering purchasing equipment for $40000that will increase sales by an estimated $10000, with annual depreciation of $10000. If the equipment is purchased, what will happen to the return on investment for the division?

A decrease of2.4%

An increase of1.6%

A decrease of1.6%

It will remain unchanged