Question
urgent thx~ 6. Assume the following information for one of a companys variable expenses: The amount of the expense in the planning budget is $9,000.
urgent thx~
6.
Assume the following information for one of a companys variable expenses:
- The amount of the expense in the planning budget is $9,000.
- The cost formula is $9.00 per hour.
- The actual level of activity is 900 hours.
- The spending variance is $260 unfavorable.
The actual amount of the expense must be:
Multiple Choice
-
$8,360.
-
$8,100.
-
$8,560.
-
$8,860.
7.
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
January | February | March | |
---|---|---|---|
Budgeted production (in units) | 70,400 | ? | 82,000 |
Budgeted raw materials purchases (in pounds) | 195,009 | 157,600 | 160,800 |
Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the following month's production needs. The company is expected to have 44,352 pounds of raw materials on hand on January 1. Budgeted production for February should be:
Multiple Choice
-
82,600 units
-
105,740 units
-
82,000 units
-
44,700 units
8.
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations:
Per Unit | Per Year | |
---|---|---|
Selling price | $ 200 | |
Direct materials | $ 70 | |
Direct labor | $ 50 | |
Variable manufacturing overhead | $ 8 | |
Sales commission | $ 8 | |
Fixed selling and administrative expense | $ 110,000 | |
Fixed manufacturing overhead | $ 300,000 |
Using absorption costing, what is the net operating income for the second year of operations?
Multiple Choice
-
$170,000
-
$190,000
-
$220,000
-
$200,000
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