Please a.nswer all questions.

1a.

Johansson Company developed the following static budget at the beginning of the company's accounting period:

Revenue (10,400 units)	$20,800
Variable costs	5,200
Contribution margin	$15,600
Fixed costs	5,200
Net income	$ 10,400

If actual production totals 10,800 units, the flexible budget would show total costs of (Do not round your intermediate calculations.): rev: 04_16_2014_QC_48449

$5,400.

$10,600.

$5,300.

None of these is correct.

1b.

The following static budget is provided:

	Per unit	Total
Sales	$80	$1,120,000
Less variable costs:
Manufacturing costs	40	560,000
Selling and administrative costs	20	280,000
Contribution margin	$20	$ 280,000
Less fixed costs:
Manufacturing costs		79,000
Selling and administrative costs		130,000
Total fixed costs		209,000
Net income		$ 71,000

What will be the overall volume variance if 15,000 units are produced and sold?

$0 F

$20,000 F

$300,000 U

$91,000 F

1c.

The following static budget is provided:

Units	21,000 units
Sales	$210,000
Less variable costs:
Manufacturing costs	$ 73,500
Selling and administrative costs	$ 52,500
Contribution margin	$84,000
Less fixed costs:
Manufacturing costs	$ 23,100
Selling and administrative costs	$ 17,850
Net income	$ 43,050

What will budgeted net income equal if 19,000 units are produced and sold? (Do not round your intermediate calculations.)

$22,050

$189,000

$35,050

$420,000

1d.

The Russell Company provides the following standard cost data per unit of product:

Direct material (3 gallons @ $2 per gallon)	$6.00
Direct labor (2 hours @ $10 per hour)	20.00
During the period, the company produced and sold 23,000 units incurring the following costs:
Direct materials	72,000 gallons @ $1.90 per gallon
Direct labor	46,500 hours @ $10.05 per hour

The direct labor usage variance was:

$5,000 favorable.

$5,000 unfavorable.

$2,325 favorable.

$2,325 unfavorable.

1e.

The Springer Company provides the following standard cost data per unit of product:

Direct material (3 gallons @ $2 per gallon)	$6.00
Direct labor (2 hours @ $11 per hour)	22.00
During the period, the company produced and sold 30,000 units incurring the following costs:
Direct material	82,000 gallons @ $1.90 per gallon
Direct labor	55,500 hours @ $11.05 per hour

The materials usage variance was:

$16,000 favorable.

$15,200 favorable.

$16,000 unfavorable.

$15,200 unfavorable.