The management of Guardian Fire Alarms has calculated the following variances: Direct materials cost variance $10,000 U Direct materials efficiency variance 35,000 F Direct labor cost variance 15,000 F Direct labor efficiency variance 13,500 U \\ Total variable overhead variance 7,000 F Total fixed overhead variance 4,000 F What is the total direct materials variance of the company? $11,000 F $1,500 F $25,000 F N $5,000 F Kelly Company has the following data: Sales Price per unit $550 a Variable Cost per unit $165 Total Fixed Costs $12,500 If the owner wants a $22,500 target profit, what would be the amount of sales revenue needed? (Round answer to the nearest dollar.) @) $32,143 $116,667 $75,000 $50,000 oS o w Thomas Company has the following selected income statement data for the current year: Sales Revenue $211,000 Variable Costs $1 16,000 Fixed Costs $38,000 3 What is the operating leverage? O A. 1.4 O B. 2.2 O C. 6.4 O D. 1.7Kuzma Foods, Inc. has budgeted sales for June and July at $680,000 and $780,000, respectively. Sales are 85% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the budgeted Accounts Receivable balance on July 31? O A. $663,000 W () B. $198,900 (O . $173,400 (O D. $234,000 Dean Manufacturing expects to produce 12,400 units in January and 13,700 units in February. The company budgets $15 per yard for direct materials and each unit has been budgeted 1 yard of material. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 3,800 yards. The company desires the ending balance in Raw Materials Inventory to be 21% of the next month's direct materials needed for production. What is the cost of the budgeted purchases of direct materials needed for January? O A. $229,155 ; O B. $43,155 O c. $172,155 (O D. $186,000 A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $7.00 per square foot, net of purchase discount. Freight in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $13.00 per hour. Payroll taxes are approximately 22% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) O A. $2.86 O B. $13.00 b O C. $15.86 O D. $22.86 The following information relates to Travis Manufacturing's overhead costs for the month: Static budget variable overhead $14,100 Static budget fixed overhead $5,900 q/ Static budget direct labor hours 1,160 hours Static budget number of units 5,800 units Travis allocates variable manufacturing overhead to production based on standard direct labor hours. Travis reported the following actual results for last month: actual variable overhead, $14,400; actual fixed overhead, $5,700; actual production of 5,500 units at 0.22 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit. Compute the variable overhead efficiency variance. (Round intermediate calculations to two decimal places and the answer to the nearest dollar.) . $1,338F . $2,140U . $2,140F O D. $1,338U Verge, Inc. has two productsLe Cadre and La Bougie. Financial data for both the products follow: Le Cadre La Bougie % Units sold 2,200 units 700 units Sales price per unit $700 $1,000 Variable manufacturing cost per unit 320 650 Sales commission (% of sales) 6% 5% Verge has two sales representativesRosemary Wilson and Maria Blanco. Each representative sold a total of 1,450 units during the month of March. Rosemary had a sales mix of 70% Le Cadre and 30% La Bougie. Maria had a sales mix of 60% Le Cadre and 40% La Bougie. Based on the above information, calculate Rosemary's total contribution to company profits. . $473,570 . $537,950 . $343,070 . $130,500 Dunbar Company, Inc. has the following budgeted sales for the first quarter: Month: January February March m Units 34,000 31,000 38,000 Expected sales for Aprill is 41,000 units. Inventory of finished goods on hand at the beginning of the quarter is 1,300 units. The company desires to maintain ending inventory equal to 20% of next month's sales in units. Prepare a production report for how many units are to be produced during the first quarter. Dunbar Company, Inc. Production Budget January, February, and March January February March Total Total units needed Budgeted units to be produced The Dear Dairy Cheese Company completed the flexible budget analysis for the second quarter, which is given below. Actual Results Units 12,850 Sales Revenue $62,760 Variable Costs 27,590 Contribution Margin $35,170 Fixed Costs 34,240 Operating Income/(Loss) $930 Flexible Budget Variance 0 $1,597 509 $2,106 180 $2,286 clc CcClc C Flexible Budget 12,850 $64,357 27,081 $37,276 34,060 $3,216 Sales Volume Variance 850 $4,257 $1,791 $2,466 $0 $2,466 F Static Budget 12,000 \\ D $60,100 25,290 $34,810 34,060 $750 Which of the following statements would be a correct factor to explain the flexible budget variance for fixed costs? () A. decrease in sales price per unit (0 B. increase in variable cost per unit () C. increase in sales volume () D. increase in fixed costs (C 000 A small business produces a single product and reports the following data: Sales price $8.00 per unit \\\\ Variable cost $4.00 per unit Fixed cost $7,500 per month Sales in units 25,000 units per month The company believes it can lower its variable cost to $3.50 per unit. What will be the new breakeven point in units (rounded to next whole unit). =D () A. 1,875 B. 2,143 () C. 1,667 D. 5,556 Last year, Meether Company produced 1,700 units and sold 700 units. The company had no beginning inventory. Meether incurred the following costs: Direct materials per unit $39 Direct labor per unit $11 Variable overhead per unit $12 Total fixed manufacturing overhead $6,800 _?/ Sales price per unit $150 Contribution margin per unit under variable costing is O A. $88 O B. $62 (O C. $84 O D. $66 Murray Company provides the following information about its product: Operating income Sales price per unit Variable cost per unit Total fixed costs What is the total contribution margin? O A. O B. () C. O D. $269,000 $291,000 $409,000 $678,000 \\3 Kelly, Inc. has collected the following data (assume no beginning inventories): Units produced 2,600 units Units sold 2,100 units L\\, Sales price $300 per unit \\ Direct materials $53 per unit Direct labor $25 per unit Variable manufacturing overhead $15 per unit Fixed manufacturing overhead $10,400 per year Variable selling and administrative costs $10 per unit Fixed selling and administrative costs $4,900 per year What is the operating income using variable costing? (Round any intermediate calculations to the nearest cent, and final answer to the nearest dollar.) O A. $413,700 O B. $426,300 (O C. $400,400 (O D. $398,400 Richards Company manufactures small plastic widgets. The standard direct materials quantity required to produce one widget is 1/2 pound at a cost of $10.00 per pound. Every widget requires 2 direct labor hours at a standard cost of $20.00 per direct labor hour. During November, 1,600 widgets were produced using 820 pounds of materials costing $3,110. At the end of November, an examination of the labor cost records showed that the company used 2,850 direct labor hours (DLHTr) at a cost of $17.00 per hour. What is the direct labor efficiency variance? O A. $8550U (O B. $7,000U \\9 O C. $8550F (O D. $7,000 F Patrick, Inc. has collected the following data. (There are no beginning inventories.) Units produced 540 units Units sold 540 units \\ LO Sales price $430 per unit Direct materials $43 per unit Direct labor $33 per unit Variable manufacturing overhead $30 per unit Fixed manufacturing overhead $9,180 per year Variable selling and administrative costs $11 per unit Fixed selling and administrative costs $10,500 per year What is the operating income using variable costing? (Round any intermediate calculations to the nearest cent, and final answer to the nearest dollar.) O A. $63,180 (O B. $57,240 (O C. $169,020 (O D. $149,340 The highest value of total cost was $86,000 in June for Acai Beverages, Inc. Its lowest value of total cost was $54,000 in December. The company makes a single product. The production volume in June and December were 13,000 and 5,000 units, respectively. What is the variable cost per unit? (Round the answer to the nearest cent.) . $6.40 per unit . $2.46 per unit . $10.75 per unit . $4.00 per unit The highest value of total cost was $840,000 in June for Horchata Beverages, Inc. Its lowest value of total cost was $510,000 in December. The company makes a single product. The production volume in June and December were 14,000 and 5,000 units, respectively. What is the fixed cost per month? (Round any intermediate calculations to the nearest cent, and final answer to the nearest dollar.) O A. $510,000 O B. $5,000 \\q) (O C. $330,000 O D. $326,620 Premier Candle Company manufactures candles. The standard direct materials quantity required to produce one tall candle is two pounds at a cost of $3.05 per pound. During November,1,000 tall candles were produced using 1,910 pounds of direct materials that cost $5,348. What is the direct materials cost variance? (Round intermediary calculations to the nearest cent and round final answer to the nearest dollar.) OA. $275U O B. $275F (O D. $478F Infinity Clock Company prepared the following static budget for the year: Static Budget Units/Volume 5,000 Per Unit Sales Revenue $3.00 $15,000 Variable Costs 1.50 7,500 Contribution Margin 7,500 Fixed Costs 4,000 Operating Income/(Loss) $3,500 If a flexible budget is prepared at a volume of 9,500 units, calculate the amount of operating income. The production level is within the relevant range. (@) (O A. $14,250 (O B. $4,000 () C. $10,250 (O D. $3,500 June sales were $28,000, while projected sales for July and August were $50,000 and $67,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. Calculate expected collections for July. O A. $16,800 (O B. $41,200 9\\\\ O C. $36,800 (O D. $20,000