question 1

Strongheart Enterprises anticipated selling 29,000 units of a major product and paying sales commissions of $8 per unit. Actual sales and sales commissions totaled 29,500 units and $249,800, respectively. If the company used a flexible budget for performance evaluations, Strongheart would report a cost variance of:

1. $13,800U.
2. $13,800F.
3. $17,800U.
4. $17,800F.
5. None of the answers is correct.

question 2

A flexible overhead budget might include which of the following items:

1. Direct materials only.
2. Direct materials, electricity, insurance and property taxes.
3. Electricity only.
4. Electricity, insurance and property taxes.
5. Insurance and property taxes only.