Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments:

	Sportswear	Lingerie	Appliances
Sales	$160,000	$120,000	$120,000
Direct advertising costs	$ 7,000	$ 12,000	$ 3,000
Newspaper ad space	62%	20%	18%

1. How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity driver?

a.$3,720

b.$6,000

c.$4,340

d.$2,280

2. 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 2018	26,000
Unit production for 2018	26,000
Budgeted fixed overhead for 2018:
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 2018	24,000
Actual unit production for 2018	28,000
Actual fixed overhead for 2018:
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

The static budget variance for direct materials is

a.$100 F.

b.$400 F.

c.$400 U.

d.$100 U.

3. Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data:

Budgeted variable costs per unit:
Direct materials	$ 7.00
Direct labor	10.00
Supplies	1.00
Indirect labor	0.50
Power	0.05
Budgeted fixed overhead for 2018:
Supervision	$4,000
Depreciation	3,000
Rent	2,000

What are the budgeted costs for materials if 5,000 units were produced?

a.$50,000

b.$9,000

c.$35,000

d.$4,000

4. San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards:

Material	Standard Mix		Standard Unit Price		Standard Cost
X	3,500 units		$1.00 per unit		$3,500
Y	1,500 units		3.00 per unit		$4,500
Yield	4,000 units

During April, the following actual production information was provided:

Material	Actual Mix
X	30,000 units
Y	20,000 units
Yield	36,000 units

What is the materials yield variance?

a.$4,000 (F)

b.$8,000 (F)

c.$8,000 (U)

d.$4,000 (U)

5. Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February:

Standard direct labor rate per hour	$15.00
Actual direct labor rate per hour	$13.50
Labor rate variance	$18,000 favorable
Actual output	1,000 units
Standard hours allowed for actual production	10,000 hours

How many actual labor hours were worked during February for Montana Company?

a.10,000

b.2,000

c.1,200

d.12,000

6. Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February:

Standard direct labor rate per hour	$15.00
Actual direct labor rate per hour	$13.50
Labor rate variance	$18,000 favorable
Actual output	1,000 units
Standard hours allowed for actual production	10,000 hours

What is the total labor budget variance for Montana Company?

a.$12,000 (U)

b.$18,000 (F)

c.$18,000 (U)

d.$12,000 (F)

7. Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor hours is the driver used to assign overhead costs to products.

Actual production	5,500 units
Actual factory overhead costs ($16,500 is fixed)	$40,125
Actual direct labor costs (11,250 hours)	$131,625
Standard direct labor for 5,500 units:
Standard hours allowed	11,000 hours
Labor rate	$12.00

The factory overhead rate is based on an activity level of 10,000 direct labor hours. Standard cost data for 5,000 units is as follows:

Variable factory overhead	$22,500
Fixed factory overhead	13,500
Total factory overhead	$36,000

What is the fixed overhead volume variance for Colina Production Company?

a.$4,125 (U)

b.$3,600 (F)

c.$1,350 (U)

d.$1,350 (F)