Question : 55.A company’s flexible budget for 12,000 units of production showed : 1258692

55.A company’s flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:    

A.$34,000.

B.$10,000.

C.$18,667.

D.$16,000.

E.$24,000.

56.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.

57.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.$12,500.

B.$25,000.

C.$20,000.

D.$30,000.

E.$35,000.

58.A company’s flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. Calculate the expected level of operating income if the company produces and sells 13,000 units.    

A.$110,500.

B.$85,000.

C.$133,000.

D.$100,000.

E.$50,500.

59.Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:    

A.$10,000 of fixed costs and $72,000 of variable costs.

B.$10,000 of fixed costs and $90,000 of variable costs.

C.$12,500 of fixed costs and $90,000 of variable costs.

D.$12,500 of fixed costs and $72,000 of variable costs.

E.$10,000 of fixed costs and $81,000 of variable costs.

60.Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of sales for 20,000 units would be:    

A.$165,000.

B.$150,000.

C.$117,272.

D.$181,500.

E.$141,900.

61.Based on a predicted level of production and sales of 30,000 units, a company anticipates total contribution margin of $105,000, fixed costs of $40,000, and operating income of $52,000. Based on this information, the budgeted operating income for 28,000 units would be:    

A.$52,000.

B.$135,333.

C.$58,000.

D.$72,500.

E.$105,000.

62.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.

63.Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: 

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

Total direct materials cost variance—unfavorable$13,750

Actual direct materials used150,000 lbs.

Actual finished units produced30,000 units

A.$133,750.

B.$150,000.

C.$106,250.

D.$158,750.

E.$120,000.

64.Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is: 

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

Total direct materials cost variance—unfavorable$13,750

Actual direct materials used150,000 lbs.

Actual finished units produced30,000 units

A.$30,000 favorable.

B.$13,750 unfavorable.

C.$16,250 favorable.

D.$30,000 unfavorable.

E.$13,750 favorable.