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Selling Question 4 (6 Marks) The president of the company, Gregory Peters, has come to you for help. Use the following data to prepare a flexible budget for possible sales production levels of 10,000, 11,000, and 12,000 units. Show the contribution marginal cach activity level. Sales price 524 per unit Variable costs Manufacturing S12 per unit Administrative $ 3 per unit si per unit Fixed costs Manufacturing 560,000 Administrative $20,000 Question 5 (3 Marks) i Give at least three good reasons why a favorable price variance for direct materials might be reported. (1.5 Marks) Give at least three good reasons why am unfavorable efficiency variance for direct manufacturing labor might be reported: (1.5 Marks) Page 9 of 10 Question 6 (4 Marks) The Maintenance Department has been servicing Gizmo Production for four years. Beginning next year, the company is adding a Scrap-Processing Department to recycle the materials from Gurmo Production. As a result, maintenance costs are expected to increase from S480,000 per year to $500,000 per year. The Scrap-Processing Department will use 25% of the maintenance efforts Required Using the stand-alone cost-allocation method, identify the amount of maintenance Got that will be allocated to Gizmo Production and the Scro-Processine

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