Emerald Corporations overhead budget for 2013 was as follows:

Factory supervision	$450,000
Utilities costs	250,000
Insurance	30,000
Property taxes	25,000
Depreciation	125,000
Total	$880,000

750,000 units were produced in 2013. Direct labor cost is $42,000,000. For both 2013 and 2014, each unit required 4 direct labor hours at $14 per hour. In 2014, property taxes, insurance, and depreciation are expected to stay at 2013 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours. The 2014 expected production is 1,200,000 units. What will be the value for utilities of Emerald in the 2014 overhead budget?

		$450,000
		$250,000
		$400,000
		$650,000

Determine the April 2014 residual income for an investment center with the following information:

Operating income for the month ended April 30, 2014	$2,300,000
Assets at March 31, 2014	10,200,000
Assets at April 30, 2014	13,150,000
Desired ROI	18%
Actual ROI	20%

		$655,650
		$688,000
		$198,500
		$704,750

Good Sleep Inc. manufactures soft pillows. Its records revealed the following data:

Number of units produced	5,000
Standard direct labor hours per unit	2.50
Standard variable overhead rate	$4.00 per hour
Standard fixed overhead rate	$6.00 per hour
Budgeted fixed overhead costs	$75,500
Actual variable overhead costs	$49,500
Actual fixed overhead costs	$80,000
Actual labor hours	13,000 direct labor hours
Total actual overhead	$129,500

Using the above information provided for Good Sleep, the total variable overhead variance is

		$4,500 (U).
		$500 (F).
		$79,500 (U).
		$30,000 (F).

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.

	Actual Results	Variance	Flexible Budget	Variance	Master Budget
Units produced	70	0	?	30 (U)	100
Center costs
Direct materials	$ 84	$ ?	$ 70	$ ?	$100
Direct labor	150	?	?	60 (F)	200
Variable overhead	?	20 (U)	210	?	300
Fixed overhead	280	?	250	?	250
Total cost	$ ?	$74 (U)	$ ?	$180 (F)	$850
Performance measures
Defect-free units to total produced	80%	?	N/A	N/A	90%
Average throughput time per unit	12 minutes	?	N/A	N/A	10 minutes

Using the information provided for Dry Cat Food division, what is the direct labor variance between the actual results and the flexible budget?

		$10 (U)
		$10 (F)
		$60 (U)
		$60 (F)

Underfoot Products uses standard costing. The following information about overhead was generated during May:

Standard variable overhead rate	$2 per machine hour
Standard fixed overhead rate	$1 per machine hour
Actual variable overhead costs	$390,000
Actual fixed overhead costs	$175,000
Budgeted fixed overhead costs	$190,000
Standard machine hours per unit produced	10
Good units produced	18,000
Actual machine hours	200,000

Using the above information provided for Underfoot Products, compute the fixed overhead volume variance.

		$5,000 (U)
		$10,000 (U)
		$10,000 (F)
		$15,000 (F)

Good Sleep Inc. manufactures soft pillows. Its records revealed the following data:

Number of units produced	5,000
Standard direct labor hours per unit	2.50
Standard variable overhead rate	$4.00 per hour
Standard fixed overhead rate	$6.00 per hour
Budgeted fixed overhead costs	$75,500
Actual variable overhead costs	$49,500
Actual fixed overhead costs	$80,000
Actual labor hours	13,000 direct labor hours
Total actual overhead	$129,500

Using the above information provided for Good Sleep, the total overhead cost variance is

		$4,000 (F).
		$5,000 (U).
		$4,500 (U).
		$500 (F).

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.

	Actual Results	Variance	Flexible Budget	Variance	Master Budget
Units produced	70	0	?	30 (U)	100
Center costs
Direct materials	$ 84	$ ?	$ 70	$ ?	$100
Direct labor	150	?	?	60 (F)	200
Variable overhead	?	20 (U)	210	?	300
Fixed overhead	280	?	250	?	250
Total cost	$ ?	$74 (U)	$ ?	$180 (F)	$850
Performance measures
Defect-free units to total produced	80%	?	N/A	N/A	90%
Average throughput time per unit	12 minutes	?	N/A	N/A	10 minutes

Using the information provided for Dry Cat Food division, the flexible budget is based on how many units produced?

		0 units
		30 units
		70 units
		100 units

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.

	Actual Results	Variance	Flexible Budget	Variance	Master Budget
Units produced	70	0	?	30 (U)	100
Center costs
Direct materials	$ 84	$ ?	$ 70	$ ?	$100
Direct labor	150	?	?	60 (F)	200
Variable overhead	?	20 (U)	210	?	300
Fixed overhead	280	?	250	?	250
Total cost	$ ?	$74 (U)	$ ?	$180 (F)	$850
Performance measures
Defect-free units to total produced	80%	?	N/A	N/A	90%
Average throughput time per unit	12 minutes	?	N/A	N/A	10 minutes

Using the information provided for Dry Cat Food division, what is the actual total cost?

		$521
		$595
		$744
		$1,031

Compute the July 2014 cost of capital (rounded to nearest percent) for an investment center with the following information:

Pre-tax operating income for July 2014	$15,500,000
Assets at July 31, 2014	8,200,000
Current liabilities at July 31, 2014	3,200,000
Long-term liabilities at July 31, 2014	2,200,000
Income tax expense for July 31, 2014	5,500,000
EVA	9,500,000

		5 percent
		53 percent
		10 percent
		61 percent

Underfoot Products uses standard costing. The following information about overhead was generated during May:

Standard variable overhead rate	$2 per machine hour
Standard fixed overhead rate	$1 per machine hour
Actual variable overhead costs	$390,000
Actual fixed overhead costs	$175,000
Budgeted fixed overhead costs	$190,000
Standard machine hours per unit produced	10
Good units produced	18,000
Actual machine hours	200,000

Using the above information provided for Underfoot Products, compute the fixed overhead variance.

		$5,000 (F)
		$5,000 (U)
		$10,000 (U)
		$10,000 (F)

Compute the average assets invested for the Omega Internationals investment center as shown below.

Omega International
Total sales	$18,000
Operating income	$4,000
Beginning assets invested	$14,000
Ending assets invested	$14,500
Average assets invested	$?
Desired ROI	28.86%
Residual income	$?

		$14,350
		$14,400
		$14,300
		$14,250

The direct materials standards for the main product of Duchess Company are 8 grams of direct materials per product at a cost of $3 per gram. During April, 969 grams of direct materials were used to produce 120 products at a direct materials cost of $2,900. The direct materials quantity variance for April was

		$57 (U).
		$77 (U).
		$27 (U).
		$97 (F).