Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

S. The following costs appoar in Your Company's flexible budget at an activity level of 5. hours: Total Cost Indirect materials$7,800 Factory rent... $18,000 flexible

image text in transcribed
S. The following costs appoar in Your Company's flexible budget at an activity level of 5. hours: Total Cost Indirect materials$7,800 Factory rent... $18,000 flexible budget amounts at an activity level of 12,000 machine-hours if indirect would be the What materials is a variable cost and factory rent is a fixed cost? Factory Rent $14,400 $18,000 $14.400 $18,000 Indirect Materials A) $7,800 B) $7,800 C) $6,240 D) $6,240 6. Your Company uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $210 per month plus $96 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 20 jobs and 162 meals, but the actual activity was 17 jobs and 164 meals. The actual cost for spending variance for catering supplies in March would be closest to: A) S380 Favorable B) S132 Unfavorable C) $132 Favorable D) S380 Unfavorable 7. Your Company's flexible budget cost formula for indirect materials, a variable cost, is $0.45 per unit of variance for indirect output. If the company's performance report for last month shows a $90 favorable materials. Since 8,700 units of output were produced last month, the actual materials for the month must have been: A) $4,005 B) $3,915 C) $3,825 D) $3,735 costs incurred for indirect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions