Question
Let q 1 represents client visits and q 2 represents hours of operations. The electricity cost for Blissful Spa depends on both client-visits and the
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.
A. $104,448 unfavorable. B. $17,280 favorable. C. $104,448 favorable. D. $17,280 unfavorable.
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