TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.

	Standard					Standard			Standard
	Quantity					Price			Cost
Direct Materials		8	pounds			$	1.50	per pound		$	12.00
Direct Labor		0.25	hour			$	6.20	per hour			1.55
										$	13.55

During November, TaskMaster purchased 184,000 pounds of direct materials at a total cost of $331,200. The total factory wages for November were $38,000, 90% of which were for direct labor. TaskMaster manufactured 22,000 units of product during November using 162,000 pounds of direct materials and 6,000 direct labor hours.

What is the direct labor efficiency variance for November?

Multiple Choice

$3,200

$2,839

$3,100

$2,750

The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30: (CIA adapted)

	Actual Results				Flexible Budget Variances				Flexible Budget				Static (Master) Budget
Sales (units)		12,800								12,800				13,800
Revenue (sales)	$	226,000			$	30,000	U		$	256,000			$	294,000
Variable costs		130,000				7,400	U			122,600				138,000
Contribution margin	$	96,000			$	37,400	U		$	133,400			$	156,000
Fixed costs		82,800								82,800				81,000
Operating Income	$	13,200			$	37,400	U		$	50,600			$	75,000

The sales activity variance is:

Multiple Choice

$38,000 favorable.

$38,000 unfavorable.

$7,400 favorable.

$30,000 unfavorable.

Danner Fashions sells a line of women's dresses. Danner's performance report for November is shown below: (CMA adapted)

The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.

	Actual					Budget
Dresses sold		6,800					8,160
Sales	$	442,000				$	701,760
Variable costs		(197,200	)				(244,800	)
Contribution margin	$	244,800					456,960
Fixed Costs		(138,000	)				(116,000	)
Operating income	$	106,800				$	340,960

The variable costs flexible budget variance for November is:

Multiple Choice

$6,800 favorable.

$6,800 unfavorable.

$5,800 favorable.

$5,800 unfavorable.