Part 1 Milltown Company specializes in selling used cars. Duringthe month, the dealership sold 31 cars at an average price of$15,900 each. The budget for the month was to sell 29 cars at anaverage price of $16,900. Compute the dealership's sales pricevariance for the month.
$31,000 unfavorable.
$10,900 favorable.
$31,000 favorable.
$33,800 unfavorable.
$33,800 favorable.
Part 2 A company’s flexible budget for 22,000 units ofproduction showed sales, $105,600; variable costs, $33,000; andfixed costs, $28,000. The fixed costs expected if the companyproduces and sells 28,000 units is:
$28,000.
$133,600.
$105,600.
$42,000.
$33,000.
Part 3 Georgia, Inc. has collected the following data on one ofits products. The direct materials price variance is:
| | |
| Direct materials standard (4 lbs @ $1/lb) | $4 | per finished unit |
| Total direct materials cost variance—unfavorable | $15,750 | |
| Actual direct materials used | 125,000 | lbs. |
| Actual finished units produced | 25,000 | units |
|
Multiple Choice
$9,250 favorable.
$25,000 unfavorable.
$20,750 favorable.
$15,750 unfavorable.
$9,250 unfavorable.
Part 3 Fletcher Company collected the following data regardingproduction of one of its products. Compute the variable overheadcost variance.
| | | | |
| Direct labor standard (2.0 hrs. @ $13.00/hr.) | $ | 26.00 | | per finished unit |
| Actual direct labor hours | | 98,500 | | hrs. |
| Budgeted units | | 50,500 | | units |
| Actual finished units produced | | 48,500 | | units |
| Standard variable OH rate (2 hrs. @ $14.00/hr.) | $ | 28.00 | | per finished unit |
| Standard fixed OH rate ($353,500/50,500 units) | $ | 7.00 | | per unit |
| Actual cost of variable overhead costs incurred | $ | 1,351,000 | | |
| Actual cost of fixed overhead costs incurred | $ | 560,000 | | |
|
Multiple Choice
$14,100 favorable.
$7,000 favorable.
$20,750 unfavorable.
$20,750 favorable.
$21,100 unfavorable.
