Let q₁ represents client visits and q₂ represents hours of operations. The electricity cost for Blissful Spa depends on both client-visits and the hours of operations and its cost formula is $440 + $0.20q₁ + $2.40 q₂. If the actual number of client visits is 840 and the salon was open for 240 hours during the month, the flexible budget amount for electricity is:

A. $2,624

B. $1,184

C. $928

D. $2,504

Fausto Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the materials costs of one unit of product:

Standard Quantity	Standard Price	Standard Cost
6.0 pounds	$ 6.00/pound	$36.00

During June, the company purchased 155,000 pounds of direct material at a total cost of $945,500. The company manufactured 15,000 units of product during June using 90,600 pounds of direct materials. The price variance for the direct materials acquired by the company during June is: (Do not round intermediate calculations.)

A. $9,060 unfavorable.

B. $9,060 favorable.

C. $15,500 unfavorable.

D. $15,500 favorable.

Fausto Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the materials costs of one unit of product:

Standard Quantity	Standard Price	Standard Cost
6.0 pounds	$6.30/pound	$37.80

During June, the company purchased 158,000 pounds of direct material at a total cost of $1,011,200. The company manufactured 18,000 units of product during June using 108,720 pounds of direct materials. The direct material quantity variance for June is:

A. $4,608 favorable.

B. $4,536 unfavorable.

C. $4,536 favorable.

D. $4,608 unfavorable.

Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product:

Standard Hours	Standard Rate	Standard Cost
1.3 hours	$22.20/hour	$28.86

The total factory wages for June were $871,680, 90 percent of which were for direct labor. The company manufactured 27,000 units of product during June using 34,560 direct labor hours. The direct labor rate variance for June is: (Do not round intermediate calculations.)

A. $104,448 unfavorable.

B. $17,280 favorable.

C. $104,448 favorable.

D. $17,280 unfavorable.

Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product:

Standard Hours	Standard Rate	Standard Cost
1.3 hours	$21.80/hour	$28.34

The total factory wages for June were $820,640, 80 percent of which were for direct labor. The company manufactured 23,000 units of product during June using 29,440 direct labor hours.The direct labor efficiency variance for June is:

A. $10,258 unfavorable.

B. $10,258 favorable.

C. $10,028 unfavorable.

D. $10,028 favorable.

Houghton Company maintains warehouses that stock items carried by its e-retailer clients. When one of Houghtons clients receives an order from an online customer, the order is forwarded to Houghton. Houghton then pulls the item from the warehouse, packs it and ships it to the customer. Houghton uses a predetermined variable overhead rate based on direct labor-hours. According to the companys records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $6.90 per direct-labor hour. During July, Houghton shipped 280,000 orders using 10,800 direct labor-hours. The company incurred a total of $73,440 in variable overhead costs. The variable overhead rate variance during July was:

A. $1,080 unfavorable.

B. $2,760 unfavorable.

C. $1,080 favorable.

D. $2,760 favorable.

Houghton Company maintains warehouses that stock items carried by its e-retailer clients. When one of Houghtons clients receives an order from an online customer, the order is forwarded to Houghton. Houghton then pulls the item from the warehouse, packs it and ships it to the customer. Houghton uses a predetermined variable overhead rate based on direct labor-hours. According to the companys records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $5.80 per direct-labor hour. During July, Houghton shipped 170,000 orders using 6,400 direct labor-hours. The company incurred a total of $36,480 in variable overhead costs. The variable overhead efficiency variance during July was:

A. $2,320 favorable.

B. $2,320 unfavorable.

C. $640 favorable.

D. $640 unfavorable.