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b. Krazy Kayaks sells its entry-level kayaks for $600.00 each. Its variable cost is $350.00 per kayak. Fixed costs are $33,000 per month for volumes
b.
Krazy Kayaks sells its entry-level kayaks for $600.00 each. Its variable cost is $350.00 per kayak. Fixed costs are $33,000 per month for volumes up to 1,300 kayaks. Above 1,300 kayaks, monthly fixed costs are $53,000. What is the budgeted operating income at a level of 1,300 kayaks per month? O A. $292,000 OB. $325,000 O C. $272,000 OD. $747,000 Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows: Window Cleaner Floor Cleaner Product Names (ammonia) (bleach) Direct materials information Standard ounces per unit 18 oz 25 oz Standard price (SP) per ounce $0.50 ? Actual quantity (AQ) used per unit 24 oz. 20 oz. Actual price (AP) paid for material $2.00 $0.71 Actual quantity purchased (AQP) and used 1,700 oz. 2,600 oz. Price variance 2 $286 U Quantity variance $9,600 U Flexible budget variance $1,814 F 2 ? $286 ? Price variance Quantity variance Flexible budget variance Number of units produced What is the direct materials flexible budget variance for ammonia? $9,600 U ? 800 $1,814 F 700 A. $7,050 favorable B. $12,150 unfavorable C. $7,050 unfavorable D. $12, 150 favorableStep by Step Solution
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