Exhibit 10-2

Bennys Bakery produces bagels for resale at local grocery stores. The master budget indicates that the company expects to use 2.5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of bagels). Each unit produced will require 0.30 direct labor hours at a cost of $24.00 per hour. Variable manufacturing overhead is applied based on direct labor hours at a rate of $4.80 per hour. Last year's sales were expected to total 40,000 units. Benny just received last year's actual results showing sales of 35,000 units.

51.Refer to Exhibit 10-2. What amount would the flexible budget show for direct labor?

a. $840,000

b. $252,000

c. $288,000

d. $280,000

e. None of the answer choices is correct.

52. Refer to Exhibit 10-2. What amount would the flexible budget show for variable manufacturing overhead?

a. $50,400

b. $57,600

c. $560,000

d. $168,000

e. None of the answer choices is correct.

53. Refer to Exhibit 10-2. What is the standard cost per unit for direct materials?

a. $25

b. $10

c. $4

d. $1

e. None of the answer choices is correct.

54. Refer to Exhibit 10-2. What is the standard cost per unit for direct labor?

a. $80.00

b. $5.00

c. $24.00

d. $7.20

e. None of the answer choices is correct.