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4)

A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:

$520 unfavorable.

$400 unfavorable.

$120 favorable.

$520 favorable.

$400 favorable.

5)

Based on a predicted level of production and sales of 30,000 units, a company anticipates total contribution margin of $105,000, fixed costs of $40,000, and operating income of $52,000. Based on this information, the budgeted operating income for 28,000 units would be:

$52,000.

$135,333.

$58,000.

$72,500.

$105,000.