Part 1 Milltown Company specializes in selling used cars. During the month, the dealership sold 31 cars at an average price of $15,900 each. The budget for the month was to sell 29 cars at an average price of $16,900. Compute the dealership's sales price variance for the month. $31,000 unfavorable. $10,900 favorable. $31,000 favorable. $33,800 unfavorable. $33,800 favorable.

Part 2 A companys flexible budget for 22,000 units of production showed sales, $105,600; variable costs, $33,000; and fixed costs, $28,000. The fixed costs expected if the company produces and sells 28,000 units is:

• $28,000.

• $133,600.

• $105,600.

• $42,000.

• $33,000.

Part 3 Georgia, Inc. has collected the following data on one of its products. The direct materials price variance is:

Direct materials standard (4 lbs @ $1/lb)	$4	per finished unit
Total direct materials cost varianceunfavorable	$15,750
Actual direct materials used	125,000	lbs.
Actual finished units produced	25,000	units

Multiple Choice

• $9,250 favorable.

• $25,000 unfavorable.

• $20,750 favorable.

• $15,750 unfavorable.

• $9,250 unfavorable.

Part 3 Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.

Direct labor standard (2.0 hrs. @ $13.00/hr.)	$	26.00		per finished unit
Actual direct labor hours		98,500		hrs.
Budgeted units		50,500		units
Actual finished units produced		48,500		units
Standard variable OH rate (2 hrs. @ $14.00/hr.)	$	28.00		per finished unit
Standard fixed OH rate ($353,500/50,500 units)	$	7.00		per unit
Actual cost of variable overhead costs incurred	$	1,351,000
Actual cost of fixed overhead costs incurred	$	560,000

Multiple Choice

• $14,100 favorable.

• $7,000 favorable.

• $20,750 unfavorable.

• $20,750 favorable.

• $21,100 unfavorable.