Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $28,000 after deducting variable costs of $72,000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

Multiple Choice

• $8,000 of fixed costs and $72,000 of variable costs.

• $8,000 of fixed costs and $90,000 of variable costs.

• $10,000 of fixed costs and $72,000 of variable costs.

• $10,000 of fixed costs and $90,000 of variable costs.

• $8,000 of fixed costs and $81,000 of variable costs.

Summerlin Company budgeted 4,700 pounds of material costing $4.00 per pound to produce 2,400 units. The company actually used 5,200 pounds that cost $4.10 per pound to produce 2,400 units. What is the direct materials quantity variance?

Multiple Choice

• $2,000 unfavorable.

• $520 unfavorable.

• $470 unfavorable.

• $2,050 unfavorable.

• $2,520 unfavorable.

Janitor Supply produces an industrial cleaning powder that requires 42 grams of material at $0.30 per gram and 0.25 direct labor hours at $18.00 per hour. Overhead is applied at the rate of $13 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?

Multiple Choice

• $7.75.

• $34.10.

• $17.10.

• $15.85.

• $20.35.

A companys flexible budget for 12,000 units of production showed sales, $46,800; variable costs, $12,000; and fixed costs, $28,000. The operating income expected if the company produces and sells 28,000 units is:

Multiple Choice

• $ 6,800.

• $50,256.

• $12,000.

• $53,200.

• $40,000.

The following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour	$	1.00
Actual variable overhead	$	96,000
Budgeted variable overhead rate per machine hour	$	2.50
Actual fixed overhead	$	20,000
Budgeted hours allowed for actual output achieved		37,000

Based on this information, the total overhead variance is:

Multiple Choice

• $3,500 favorable.

• $13,500 favorable.

• $10,000 unfavorable.

• $13,500 unfavorable.

• $10,000 favorable.