Question
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014 28,000
Unit production for 2014 28,000
Budgeted fixed overhead for 2014:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2014 27,000
Actual unit production for 2014 29,000
Actual fixed overhead for 2014:
Supervision $ 850
Depreciation 2,000
Rent 150
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
5. Refer to Figure 8-8. The flexible budget variance for indirect labor for 2014 is
a. $200 F.
b. $150 F.
c. $150 U.
d. $200 U.
6. Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is
a. $2,010 F.
b. $240 F.
c. $1,620 F.
d. $850 F.
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