Question

# 1. Given the following performance report, determine the total amount of variance and if it is...

1. Given the following performance report, determine the total amount of variance and if it is favorable or unfavorable. Actual costs: Maintenance is \$50,000; Power is \$80,000; and Indirect Labor is \$10,000. Budgeted costs: Maintenance is \$45,000; Power is 81,000; and Indirect Labor is \$8,000.

 a. 6,000 U
 b. 6,000 F
 c. 12,000 U
 d.12,000F

2. We prepare a budget based on manufacturing 20,000 chairs this month. Budgeted costs are: Fixed manufacturing costs = \$50,000 per month; Variable manufacturing costs = \$10 per chair. However; we actually produced 21,000 chairs during March. How much is the flexible budget for March?

 a. \$260,000
 b. \$50,000
 c. \$250,000
 d. \$200,000

3. Please determine the total amount of Direct Labor in our Budget for January and February together given the following information: Direct labor per unit = .25 hours; Direct labor rate is \$30 per hour; Expected number of units to produce in January is 20,000 units and in February is 15,000 units.

 a. \$200,000
 b. \$235,000
 c. \$262,500
 d. \$285,000

 1) actual flexible variance maintenance 50,000 45,000 5000 U power 80,000 81,000 1000 F indirect labor 10,000 8,000 2000 U total 140,000 134,000 6000 U answer) option a 6000 U 2) Flexible budget 50000+21000*10 260,000 answer ) option a 3) jan feb expected units 20,000 15000 direct labor hr per unit 0.25 0.25 total hrs 5000 3750 cost per hr 30 30 total direct labor cost 150000 112500 262500 answer) optionc C

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