Palestine medicine company has reached for a new treatment of eye drop , the management after scientific studies determined that each unit of eye drop required 2 mlg of soduiom and 3 labor hours to br ready, the budgeted cost of soduiom is $10 per mlg and each labor hour costed $5, cost of V.OH is $2 per Labor hour. during the year the company actually purchased 30000 mlg of soduiom at a cost of $360,000. Actually soduim used was 25000 mlg, the actual labor hour used 28000 labor hour at a cost of $126,000 and V.OH Cost $60,000, if actual production were 10000 units, compute DL Spending Variance?

a.

$10000 F.

b.

$10000 U.

c.

$24000 F.

d.

$24000 U.

Clear my choice

2.

Alquds Manufacturing company's operating income shows that it was less than planned (budgeted) operating income by $30,000. this difference let management to ask about the reasons to get a feedback. the financial manager tries to interpret the result by different way based on following data; Actual Data:Sales in units 20000, selling price $55 per unit, DM used 35000 gram at a cost of $310000, DL used 20000 labor hour at a cost of $240000, V.OH cost $250000, F.OH cost $200000. Budgeted Data: Sales in units 21500 units, Selling price per unit $50 per unit, Standard DM required is 2 gram at a cost of $8 per gram, DL 0.8 hour at a cost of $12.5, V.OH cost is $11.9767 per per labor hour and F.OH cost $180,000 for capacity of 20000 labor hours, What is Flexible Budget Operating Income?

a.

$130000.

b.

$100000.

c.

$0.

d.

$108372.