STRAUSS Corporation projects the following unit sales of fidgets for the upcoming 4-month period:

July = 50,000 fidgets

August = 65,000 fidgets

September = 45,000 fidgets

October = 80,000 fidgets

NOW ASSUMEthat during the month of September, they actually produced 45,000 fidgets as follows:

Materials : Purchased and used 100,000 lbs. @ avg. cost of $11 per lb.

Labor: Used 24,000 hours at a total cost of $168,000

34.The direct materials flexible budget amount, used in performance evaluation will show:

$______

35.In words, this specifically means: (use the $ amount in your answer)

___________________________________________________________

36.The direct-materials flexible budget variance is: $___________

Strauss Corporation uses variance analysis to assess and evaluate operations. During the month, various events occurred that affected operations. For each of the situations described, indicate the name and amount of the variancewhich most likely reflectsthe financial impact of the situation described.Do NOT indicate a specific variance more than once.

37. The product uses a raw material that is in limited supply, and the worldwide demand turned out to be even greater than the company and economists had predicted. (4 pts)

Variance name :

Amount and direction:

38. A new machinery maintenance program was put into effect at the start of the period which called for longer times in between routine inspections. This resulted in more raw materials being used in production and an increase in scrap costs. (4 pts)

Variance name :

Amount and direction:

39.During the period, in an effort to save money on costly training, the company utilized a more aggressive "on the job" training regiment, which resulted in workers taking longer than expected to complete routine production tasks. (4 pts)

Variance name :

Amount and direction:

40.As noted above, the company had originally planned to produce 50,000 fidgets during the period but actually only 45,000 were produced. Consider the variances described in questions three questions immediately above. Which of these is most likely to affected or caused by the fact that they produced fewer units than originally planned or expected? Briefly explain why or why not. (4 pts)