Question : 14) The sales-volume variance is: A) $4,000 favorable B) $28,000 : 1217251

 

14) The sales-volume variance is:

A) $4,000 favorable

B) $28,000 unfavorable

C) $32,800 unfavorable

D) $4,800 favorable

 

15) Bebee Corporation currently produces cardboard boxes in an automated process. Expected production per month is 40,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $18,000 per month. Manufacturing overhead is all fixed costs. What is the flexible budget for 20,000 and 40,000 units, respectively?

A) $21,000; $33,000

B) $21,000; $42,000

C) $30,000; $42,000

D) None of these answers are correct.

 

Answer the following questions using the information below:

 

Brennen Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 2,000 units but actually made 2,400 units.

 

16) The flexible-budget amount is:

A) $48,000

B) $50,000

C) $57,600

D) $60,000

17) The flexible-budget variance is:

A) $9,600 favorable

B) $2,400 unfavorable

C) $10,000 unfavorable

D) $12,000 favorable

 

18) The sales-volume variance is:

A) $9,600 favorable

B) $2,400 unfavorable

C) $10,000 unfavorable

D) $12,000 favorable

 

Answer the following questions using the information below:

 

Melville Incorporated planned to use $37.50 of material per unit but actually used $36.75 of material per unit, and planned to make 1,800 units but actually made 1,600 units.

 

19) The flexible-budget amount is:

A) $60,000

B) $67,500

C) $59,200

D) $1,200

20) The flexible-budget variance is:

A) $7,500 favorable

B) $7,500 unfavorable

C) $1,200 unfavorable

D) $1,200 favorable

 

21) The sales-volume variance is:

A) $7,500 favorable

B) $7,500 unfavorable

C) $1,200 unfavorable

D) $1,200 favorable

 

22) Hemberger Corporation currently produces baseball caps in an automated process. Expected production per month is 20,000 units, direct material costs are $3.00 per unit, and manufacturing overhead costs are $46,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 10,000 and 20,000 units, respectively?

A) $53,000; $83,000

B) $53,000; $106,000

C) $76,000; $106,000

D) None of these answers are correct.

Answer the following questions using the information below:

 

The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

 

ActualFlexibleStatic

ResultsBudgetBudget

Sales volume (in units)10,000     12,500

 

Sales revenues$500,000$$625,000

Variable costs256,000$ ________300,000

 

Contribution margin244,000$325,000

 

Fixed costs229,000$ ________225,000

Operating profit$ 15,000$      $ 100,000

 

23) The flexible budget will report ________ for variable costs.

A) $256,000

B) $300,000

C) $240,000

D) $320,000