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ruth Co. was analyzing variances for one of its operations. The initial budget forecast production of 10,000 units during the year with a variable manufacturing

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ruth Co. was analyzing variances for one of its operations. The initial budget forecast production of 10,000 units during the year with a variable manufacturing overhead rate of $5 per unit. Truth produced 9,000 units during the year. Actual variable manufacturing costs were $1605 .000. What amount would be Truth's flexible budget variance for the year? A. $5,000 favorable. B. $10,000 favorable. C. $5,000 unfavorable. D. $10,000 unfavorable Use the following information to answer questions 16 and 17: Kingdom Industries produces widgets with budgeted standard direct materials of 5 pounds per widget at $10 per pound and planned for the production of 1,200 widgets. Standard direct labor was budgeted at 1 hour per widget at $15 per hour. The actual usage in the current year was 2,500 pounds and 1,500 hours to produce 1,000 widgets. 16) What was the unfavorable direct labor usage variance? A. $3,750 B. $4,500 C. $7,500 D. $9,000 17) What was the direct material usage variance? A. $12,500 favorable. B. $15,000 favorable. C. $12,500 unfavorable. D. $15,000 unfavorable. Use the following information to answer questions 18 through 20: Mercy Corp.'s Standard materials usage and cost for one unit of Product A is 10 lbs. at $1 a lb. Actual unit produced were 100 units with 250 lbs. of raw materials and a total cost of $750 18) What was Mercy's direct material price variance? A. $250 favorable. B. $500 favorable. unavorable C. $750 unfavorable D. $750 favorable. 19) What was Mercy's direct material usage variance? A. $250 favorable. B. $250 unfavorable. C. $750 unfavorable. D. $750 favorable. 20) What was Mercy's total direct material variance? A. $250 favorable B. $250 unfavorable C. $750 unfavorable. D. $750 favorable

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