Question 24 7.2 pts Hello Kitty uses sugar in producing lollipops. If the price of sugar doubles, which variance is directly impacted? O Direct materials price variance. Direct labor efficiency variance. O Direct materials quantity variance. O Direct labor rate variance. MacBook Pro Question 25 7.2 pts Finkenauer Corporation's sales are all on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March? O $37,000 O $51,000 O $41,000 $24,000 Question 26 7.2 pts Doug Jones has decided to start his own business, and it thinking about creating a budget. Benefits that Doug will see from budgeting are O Budgets help managers communicate objectives to employees O Budgets compels managers to think ahead O budgets provide benchmarks to evaluate subsequent performance O all of the answers are correct. MacBook Pro Question 27 7.2 pts Mark Curran is trying to interpret his flexible budget. His company has seen a decrease in activity that is within the relevant range. He should expect to see: O decreases in variable cost per unit. O increases in total costs. O decreases in total costs. O increases in variable cost per unit. Question 28 7.2 pts Steve Bullock is looking at his company's financial results and has discovered that the company's contribution margin is NOT sufficient to cover fixed expenses. What does this mean? The contribution margin is negative. O Total profit must equal total expenses. O Variable expenses must equal contribution margin. O Aloss has occurred. Question 29 72 pts Witzke Works has collected the following data for its single product Direct materials standard 10 pounds per unit Direct materials standard cost $0.75 per pound Actual material purchased cost $0.85 per pound Actual direct materials used 40,000 pounds Actual units produced 4,500 What is the direct materials quantity variance? O $3,750 favorable $6750 favorable O $3.750 unfavorable $6750 unfavorable Question 30 7.2 pts Mark Ronchetti Company has variable costs of $5 per unit and a selling price of $10 per unit. Fixed costs are $200,000. Planned unit sales for 2015 are 45,000 units. What is the margin of safety in units for 2015? O 3000 O 2000 O 7000 O 5000 MacBook Pro
