Multiple choice
68. Thai Connection Ltd is a travel agency. They budget monthly costs of S50,000 plus S125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were $53,000 fixed costs and S65,000 variable costs. The flexible budget variance for fixed costs in June is: a. S3750 unfavourable b. $12,000 favourable d. S3,000 unfavourable LO 4 69. Thai Connection Ltd is a travel agency. They budget monthly costs of $50,000 plus S125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were S53,000 fixed costs and S65,000 variable costs. The flexible budget variance for variable costs in June is: a. S3.750 favourable b. $7,500 unfavourable c. S3,750 unfavourable d. $7,500 favourable LO 4 70. Thai Connection Ltd is a travel agency. They budget monthly costs of S50,000 plus S125 per customer served. They plan to serve 550 customers per month. During June they served 580 customers. Actual costs for June were S53,000 fixed costs and S65,000 variable costs. The flexible budget variance for variable costs is due to: a. more customers served than expected b. lower variable costs per customer than expected c. higher fixed costs than expected d. a and b LO 4 71. Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs Production Input Standard Cost Direct Materials 2 kilos of raw material Direct Labour Variable Overhead $2 per direct labour hour Each kilo = $5 1 hour Direct Labour is charged at S10 per hour Fixed Overhead S4 per frog Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is S45 Calculate the standard cost for one frog. a. $24 b. $22 c. $26 d. $20 LO 4 72. Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. Production Input | Standard Cost Direct Materials Direct Labour Variable Overhead $2 per direct labour hour 2 kilos of raw material Each kilo 1 hour Direct Labour is $5 at $10 per hour Fixed Overhead $4 per frog Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is $45 The static budget for direct materials the year is: a. $200,000 b. S100,000 c. $80,000 d. $10,000 LO 4 73. Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. Production Input Standard Cost Direct Materials Direct Labour Variable Overhead $2 per direct labour hour 2 kilos of raw material Each kilo S5 1 hour Direct Labour is at $10 per hour Fixed Overhead Total fixed overhead for the year is estimated to be S80,000. The selling price for each frog is S45. Actual sales and production was 22,000 The flexible budget for direct materials the year is a. $200,000 b. S100,000 e. $220,000 d. $10,000 LO 4 74. Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. Production Input Direct Materials Direct Labour Variable Overhead $2 per direct labour hour Standard Cost 2 kilos of raw material Each kilo - S5 1 hour Direct Labour is charged at $10 per hour Fixed Overhead Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is S45. Actual sales and production was 22,000. Actual direct material cost was $220,000 The flexible budget variance for direct materials the year is: a. $20,000 unfavourable b. SO c. $20,000 favourable d. unable to be determined LO 4 75. Fickle Factory Ltd produces unique large ceramic frogs. The accountant has collected the following information regarding standard costs. Production Input Standard Cost Direct Materials 2 kilos of raw material Each kilo $5 Direct Labour l hour Direct Labour is charged at $10 per hour Variable Overhead $2 per direct labour hour Fixed Overhead S4 per fro Total fixed overhead for the year is estimated to be $80,000. The selling price for each frog is S45. Actual sales and production was 22,000 The flexible budget for fixed overhead for the year is: a. $88,000 b. $72,727 c. $80,000 $10,00
