Question

1.

Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and data, compute the direct materials price variance if the standard quantity was 10 pounds per unit.

Direct materials purchased and used    99,000 pounds

Price paid for direct materials $4.00 per pound

Number of good units produced    9000 units

		$99,000 (Favorable)
		$45,000 (unfavorable)
		$54,000 (Favorable)
		$45,000 (favorable)

2.

Johs company had $220,000 in invested assets, sales of $242,000, income of $66,000 and the rate of return on investment is

		3%
		27.3%
		9.1%
		30%

3.

On a piece of scrap paper prepare a flexible budget for 5,000, 6,000, and 7,000 units of output.

Use the following data:

Variable costs: direct labor $4.00, direct materials $2.00, and overhead $3.00

Budgeted fixed overhead: $40,000.

Total budgeted cost for 6,000 units is

		$94,000
		some other number
		$103,000
		$85,000

Answer 1