Dinosaur Company provides the following standard cost data per unit of product: Direct Material (4 ounces @ $5.00 per ounce) Direct Labor (3 hours @ $12.50 per hour) $ 20.00 $ 37.50 The company expected to produce 20,000 units. During the period, the company actually produced and sold 21,000 units, incurring the following costs: Direct Material 78,750 ounces @ $5.90 per ounce Direct Labor 73.500 hours @ $ 13.00 per hour The direct labor price variance was $31,500 Unfavorable $31.500 Favorable 536 750 Unfavorable $36 750 Favorable Headphones Company makes a product that is expected to require 5 hours of labor per unit of product. The standard cost of laboris $10.00 per hour. The company expected to produce 800 units of the product during the period. The company actually used 5 4 hours of labor per unit of product. The actual cost of labor was $9.50 per hour. The company made 700 units of product during the period. Based on this information alone, the labor usage variance is: 52.800 Unfavorable 51,890 Unfavorable $2.800 Favorable 50 51.890 Favorable Billy Company expects the following total sales: Vanth March April May June Sales $50.000 $60,000 $70,000 $65,000 1 The company expects 50% of its sales to be credit sales and 50% for cash. Credit sales are collected as follows: 20% in the month of sale, 80% in the month following the sale. The budgeted accounts receivable balance on May 31 is: $28.000 $56,000 $48.000 588,000 $24.000 Smithy Company manufactures and sells two lines of rugs, omate and basic. During the most recent accounting period, the omate and basic Divisions sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below: (Do not round intermediate calculations.) Ornate Basic Sales $ 1,600,000 $ 400,000 Less cost of goods sold: Unit-level production cost 1,000,000 240,000 Depreciation, production equipment (Fixed) 240.000 60.000 Gross margin $360,000 $100,000 Less operating expenses Unit-level selling and administrative costs 60,000 50,000 Corporate-level facility expenses (Fixed) 52.000 52.000 Net income (loss) $ 248,000 $ (2.000) If unit sales for both divisions increased 20%, the company would report which of the following? A net income for the Basic division of $9.000 A decline in profit for the Basic division A net income for the Basic division of $20,000 A 20% increase in total net income of the company A 552.000 increase in net income for the Basic division
