Golden Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Golden uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 22 pounds per unit; $ 4$4 per pound Labor: 55 hours per unit; $ 22$22 per hour During the first quarter, Golden produced 5 comma 0005,000 units of this product. At the end of the quarter, an examination of the direct materials records showed that the company used 9 comma 5009,500 pounds of direct materials and the direct materials cost variance was $ 3 comma 870$3,870 U. Which of the following is a logical explanation for this variance? A. The company paid a higher cost per hour for labor than allowed by the standards. B. The company paid a higher cost for the direct materials than allowed by the standards. C. The company used more labor hours than allowed by the standards. D. The company used a greater quantity of direct materials than allowed by the standards.

The management of Vert Lawnmowers has calculated the following variances:

Direct materials cost variance	$ 8 comma 000$8,000U
Direct materials efficiency variance	35 comma 00035,000F
Direct labor cost variance	16 comma 00016,000F
Direct labor efficiency variance	14 comma 00014,000U
Variable overhead cost variance	3 comma 5003,500F
Variable overhead efficiency variance	5 comma 0005,000F
Fixed overhead cost variance	4 comma 0004,000F

When determining the total production cost flexible budget variance, what is the total manufacturing overhead variance of the company?

A.

$ 12 comma 500$12,500

F

B.

$ 4 comma 000$4,000

F

C.

$ 5 comma 000$5,000

F

D.

$ 8 comma 500$8,500

F

City Golf Center reported actual operating income for the current year as

$ 66 comma 000$66,000.

The flexible budget operating income for actual volume is

$ 56 comma 000$56,000,

while the static budget operating income is

$ 59 comma 000$59,000.

What is the flexible budget variance for operating income?

A.

$ 3 comma 000$3,000

favorable

B.

$ 3 comma 000$3,000

unfavorable

C.

$ 10 comma 000$10,000

unfavorable

D.

$ 10 comma 000$10,000

favorable