Question : 51. Based predicted production of 12,000 units, a company anticipates : 1256719

51. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:A.  $125,000 fixed and $102,500 variable.B.  $125,000 fixed and $123,000 variable.C.  $102,500 fixed and $150,000 variable.D.  $150,000 fixed and $123,000 variable.E.  $150,000 fixed and $102,500 variable.

52. Based on predicted production of 22,000 units, a company anticipates $15,000 of fixed costs and $27,500 of variable costs. The flexible budget amounts of fixed and variable costs for 16,000 units are:A.  $10,910 fixed and $20,000 variable.B.  $10,910 fixed and $27,500 variable.C.  $20,000 fixed and $15,000 variable.D.  $15,000 fixed and $20,000 variable.E.  $15,000 fixed and $27,500 variable.

53. Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?A.  $12,500B.  $25,000C.  $20,000D.  $30,000E.  $35,000

54. Which department is often responsible for the direct materials price variance?A.  The accounting department.B.  The production department.C.  The purchasing department.D.  The finance department.E.  The budgeting department.

Reference: 21_01

Five Rings, Inc, has collected the following data on one of its products: 

Direct materials standard (4 lbs. @ $1/lb.)

$4 per finished unit

Total direct materials cost variance—unfavorable

$13,750

Actual direct materials used

150,000 lbs.

Actual finished units produced

30,000 units

55. The actual cost of the direct materials used is:A.  $133,750B.  $150,000C.  $106,250D.  $158,750E.  $120,000

56. The direct materials quantity variance is:A.  $30,000 favorableB.  $13,750 unfavorableC.  $16,250 favorableD.  $30,000 unfavorableE.  $13,750 favorable

57. The direct materials price variance is:A.  $13,750 unfavorableB.  $16,250 unfavorableC.  $16,250 favorableD.  $30,000 unfavorable

E.  $33,000 favorable

58. The entry to record the material variances would include a:

A. Credit to Goods in Process for $133,750.

B. Debit to Direct Material Price Variance for $13,750.

C. Credit to Direct Material Quantity Variance for $13,750.

D. Debit to Goods in Process for $120,000.

E. Debit to Raw Materials for $120,000.

Reference: 21_02

Kermit Enterprises has collected the following data on one of its products: 

Direct materials standard (4 lbs. @ $1/lb.)

$4 per finished unit

Total direct materials cost variance—favorable

$7,500

Actual direct materials used

150,000 lbs.

Actual finished units produced

30,000 units

59. The direct materials quantity variance is:A.  $30,000 favorableB.  $30,000 unfavorableC.  $22,500 favorableD.  $37,500 unfavorableE.  $37,500 favorable

60. The direct materials price variance is:

A.  $30,000 favorableB.  $30,000 unfavorableC.  $22,500 favorableD.  $37,500 unfavorableE.  $37,500 favorable