QUESTION 23

1. Littleton Company's monthly direct labor budget is $28,000 for a planned output of 200 shoes. Poor quality materials caused workers to spend more time to rework the material. As a result, they only produced 150 shoes and the actual direct labor costs were $35,000.

   The direct labor budget total variance is:

   	a.	$30,000 (U)
   	b.	$15,000 (F)
   	c.	$15,000 (U)
   	d.	$7,000 (U)

QUESTION 26

1. After selling 375 machines, Marblehead Manufacturing prepared a flexible budget that included $74,000 in fixed overhead, $18,200 for direct labor, $4,500 for direct materials and $19,750 for variable overhead. The master budget was based on sales of 400 machines.

   What would total costs be on the master budget?

   	a.	$119,280
   	b.	$42,450
   	c.	$116,450
   	d.	$2,830

QUESTION 28

1. Gloucester Fishing Co. planned a master budget that included $82,000 in fixed overhead for their boat in addition to $13,500 for direct labor, $2,000 for direct materials and $22,750 for variable overhead. The master budget was based on sales of 100,000 lbs. of fish. The actual sales for the season were 110,000 lbs. of fish. What would total overhead costs be on the flexible budget?

   	a.	$72,000
   	b.	$107,025
   	c.	$104,750
   	d.	$82,000