QUESTION #6 Multiple Choice Questions The following Multiple Choice questions have been selected from the test bank and require detailed calculations. Please recognize that these questions are not multiple choice questions that you read and circle the answer. You will need to use all the information gained from these chapters to CALCULATE the answers. 1. A company's flexible budget for 12,000 units of production showed sales, 548,000; variable costs, $18.000; and fixed costs, 516,000. The net income you would expect the company to earn if it produces and sells 15,000 units is: B) S14,000 $17.500. D) $21,500 E) $26,000. -0- 2. Product A has a sales price of $9. Based on a 10,000-unit production level, the variable costs are $5 per unit and the fixed costs are $2 per unit. Using a flexible budget for 12,500 units, what is the budgeted income from Product A? A) $12,500. B) $25,000. C) $30,000 D) $35,000. E) $40,000 RKBOOK 2 SPRING 2021 the following to answer questions 3-5: Sheen, Inc., has collected the following data on one of its products. Direct material standard (4 kg @ si/kg) $4/finished unit Direct material flexible budget variance favourable Actual direct material used 125,000 kg Actual finished units produced $13,750 25,000 units 3. The actual cost of the direct material used is: A) S113,750. B) S125,000 C) $100,000 D) S138,750. E) Cannot be determined. 4. The direct material quantity variance is: A) $25,000 favourable, B) $13.750 unfavourable. C) $11,250 unfavourable, D) $25,000 unfavourable. E) Some other amount. 5. The direct material price variance is: A) $13,750 unfavourable. B) S11,250 unfavourable. C) $11,250 favourable. D) $25,000 unfavourable. E) $13,750 favourable. Actuals Actual Volume Flexible Budget Actual Volume Actual Volume Actual Input (AQ) Actual Inputs (AQ) Standard Input Actual Price Standard Price X Standard Price Price VARIANCE Quantity VARIANCE Flexible Budget Variance ise the following to answer questions 6-7: that Bradford Company budgeted 4,000 kg of material costing S0.50 per kg to make 2,000 units. The company actually used 4,500 kg cost $0.51 per kg. 6. What was the quantity variance? A) $ 40 unfavourable. B) $45 unfavourable. C) $250 unfavourable. D) $255 unfavourable. E) $295 unfavourable. Rese 7. What was the price variance? A) $ 40 unfavourable. B) $ 45 unfavourable. $250 unfavourable. D) $255 unfavourable, E) $295 unfavourable