Figure 8-8

Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:

Rammazzotti Inc., had the following budgeted data:

Unit sales for 2014 26,000

Unit production for 2014 26,000

Budgeted fixed overhead for 2014:

Supervision $ 800

Depreciation 2,000

Rent 100

Budgeted variable costs per unit:

Direct materials $0.15

Direct labor 0.20

Supplies 0.02

Indirect labor 0.05

Power 0.02

The following actually occurred:

Actual unit sales for 2014 24,000

Actual unit production for 2014 28,000

Actual fixed overhead for 2014:

Supervision $ 850

Depreciation 2,000

Rent 100

Actual variable costs:

Direct materials $3,500

Direct labor 4,900

Supplies 530

Indirect labor 1,250

Power 470

15. Refer to Figure 8-8. The budgeted cost for direct labor for 2014 was

a. $1,200.

b. $1,300.

c. $4,800.

d. $5,200.

18. Refer to Figure 8-8. The total flexible budgeted costs for 2014 are

a. $10,560.

b. $13,460.

c. $13,510.

d. $15,220.

20. Refer to Figure 8-8. The flexible budget variance for indirect labor for 2014 is

a. $1,250 F.

b. $50 F.

c. $150 F.

d. $1,200 U.

21. Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is

a. $90 F.

b. $140 F.

c. $1,620 F.

d. $50 F.

22. Refer to Figure 8-8. The total actual costs for 2014 were

a. $13,550.

b. $10,650.

c. $13,600.

d. $13,510.