1. Lee Company's standards for the most recent period are given below. Fixed and variable manufacturing overhead costs are applied to products on the basis of machine hours. The denominator volume of machine hours is 9,000.

   	Standard Quantity or Hours per unit	Standard Price or Rate per unit	Standard Cost per unit
   Direct Materials	3 feet	$6 per foot	$18
   Direct Labor	1.5 direct labor hours	$10 per direct labor hour	$15
   Variable Overhead	2 machine hours	$12 per machine hour	$24
   Fixed Overhead	2 machine hours	$15 per machine hour	$30

   Actual costs for the most recent period, during which 5,000 units of output were actually produced and used 9,600 machine hours, are given below:

   Direct Materials	The firm purchased 16,000 feet at $6.30 per foot, but only used 14,500 feet in production.
   Direct Labor	The firm used 7,150 direct labor hours and paid $11 per direct labor hour.
   Variable Overhead	Actual variable overhead costs were $122,880.
   Fixed Overhead	Actual fixed overhead costs were $142,000.

   What was the companys fixed overhead volume variance?

   	A.	$9,000 favorable
   	B.	$9,000 unfavorable
   	C.	$15,000 unfavorable
   	D.	$15,000 favorable

2. A&B Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for 80 jobs, but the actual number of jobs turned out to be 90. A report comparing the budgeted revenues and costs to the actual revenues and costs appears below:

   A&B Co.
   For the Month Ended April 30
   		Revenue/Cost Formulas	Actual Results	Planning Budget
   Number of jobs (Q)			90	80
   Revenue		$100Q	8,900	8,000
   Expenses:
   	Variable expenses	?	3,800	3,200
   	Fixed expense	?	2,100	2,500
   Total expenses			5,900	5,700
   Net operating income			3,000	2,300

   What is the amount of revenue variance in A&Bs performance report for April?

   	A.	$900 favorable
   	B.	$900 unfavorable
   	C.	$100 unfavorable
   	D.	$100 favorable

3. Alice Supply Corporation manufactures and sells cotton gauze for $2 a box. Expected sales of gauze (in boxes) for upcoming months are as follows:

   	# of boxes
   August....................	60,000
   September..............	75,000
   October..................	100,000

   Management likes to maintain a finished goods inventory equal to 25% of the next month's estimated sales.What is the company's budgeted production in boxes for September?

   	A.	71,250 boxes
   	B.	63,750 boxes
   	C.	81,250 boxes
   	D.	75,000 boxes

4. YZ Co.s balanced scorecard lists performance measures that belong to the following four perspectives: financial, customer, internal business processes, and learning and growth. Which of the following pairs does NOT belong to the same perspective?

   	A.	Customer satisfaction and number of customer complaints
   	B.	Hours of in-house training per employee and employee turnover
   	C.	Throughput time and manufacturing cycle efficiency
   	D.	Residual income and market share