18) Assume the following information appears in the standardcost card for a company that makes only one product:

	Standard Quantity or hours		Standard Price or Rate			Standard Cost
Direct materials	5	pounds	$	11.70	per pound	$	58.50
Direct labor	2	hours	$	17.00	per hour	$	34.00
Variable manufacturing overhead	2	hours	$	3.00	per hour	$	6.00

During the most recent period, the following additional informationwas available:

• 20,000 pounds of material was purchased at a cost of $10.50 perpound.
• All of the material that was purchased was used to produce3,900 units.
• 8,000 direct labor-hours were recorded at a total cost of$132,000.

What is the direct materials spending variance?

A) 5850 U

B) 5850 F

C) 18150 F

D) 18150 U

1) Assume that the cost formula for one of a company’s variableexpenses is $5.00 per unit. The company’s planned level of activitywas 2,000 units and its actual level of activity was 2,200 units.The actual amount of this expense was $10,050. The spendingvariance for this expense is:

A) 950F

B) 1550F

C) 2500F

D) 2500U

10) Assume that a company provided the following excerpts ofinformation from its flexible budget performance report:

	Actual Results				Flexible Budget				Planning Budget
Flights (q)		55				?				50
Revenue ($175.00q)	$	11,550			$	?			$	?

What amount of revenue would appear in the company’s flexiblebudget?

A) 8750

B) 9075

C) 9625

D) 9175