Murie Corporation makes one product and has provided the following information: Budgeted selling price per unit $ 98 per unit sold Budgeted unit sales, February 11,000 units Raw materials requirement per unit of output 5 pounds Raw materials cost $ 3.00 per pound Direct labor requirement per unit of output 2.5 direct labor-hours Direct labor wage rate $ 18.00 per direct labor-hour Predetermined overhead rate (all variable) $ 11.00 per direct labor-hour Variable selling and administrative expense $ 2.70 per unit sold Fixed selling and administrative expense $ 80,000 per month The estimated net operating income (loss) for February is closest to: Multiple Choice $42.000 $35,500 O $5,800 $85,800 Which of the following may appear on a flexible budget performance report? Multiple Choice A favorable revenue variance A f the above may appear on a flexible budget performance report. An unfavorable activity variance. An unfavorable spending variance. In a flexible budget, what will happen to fixed costs as the activity level increases? Multiple Choice The fixed cost per unit will decrease The fixed cost per unit will remain unchanged. O Fixed costs are not included in a flexible budget. The fixed cost per unit will increase. Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $7.850 per month plus $402 per press run plus $952 per book set-up. The company expected its activity in July to be 206 press runs and 113 book set-ups, but the actual activity was 203 press runs and 112 book set-ups. The actual cost for wages and salaries in July was $196,180. The spending variance for wages and salaries in July would be closest to: Multiple Choice $100F $2,058 F $2,058 U $100 U