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Webb Company has three variable costs for its jacket. The budgeted variable costs per jacket are as follows: Cost Category Variable Cost per Jacket Direct material cost $60 Direct manufacturing labor costs 16 Variable manufacturing overhead costs 12 Total Variable Costs $88 The relevant range for the cost driver is from 0 to 12,000 jackets. The budgeted and actual data for April 2018 are as follows: Budgeted fixed costs for production between 0 and 12,000 jackets $976,000 Budgeted Selling price per jacket is $110 Budgeted production and sales 12,000 jackets Actual production and sales 10,000 jackets. 19. Fixed Costs Variance is: a. $84,100 b. $144,000 c. $13,500 d. None of the above. 20. The unfavorable static budget variance for operating income is: a. $108,000 b. $114,000 c. $28,000 d. $220,000 Webb Company has three variable costs for its jacket. The budgeted variable costs per jacket are as follows: Cost Category Variable Cost per Jacket $60 Direct material cost Direct manufacturing labor costs 16 Variable manufacturing overhead costs 12 Total Variable Costs $88 The relevant range for the cost driver is from 0 to 12,000 jackets. The budgeted and actual data for April 2018 are as follows: Budgeted fixed costs for production between 0 and 12,000 jackets Budgeted Selling price per jacket is Budgeted production and sales Actual production and sales $976,000 $110 12,000 jackets 10,000 jackets Using the same information in Webb Company's Data answer questions 21, 22, 23 & 24. Recall that actual level of performance is 10,000 units of jackets produced and sold. You are to flex the budget to reflect that actual level of performance 21. The flexible materials amount for Webb Company at 10,000 level is: a. $621,000 b. $600,000 c. $800,000 d. 1,200,00 e. None of the above. 22. The flexible budget for Direct labor at 10,000 level of performance is: a. $140.000 b. $170,000 c. $160,000 d. $300,000 e. None of the above. 23. The variance between static and flexible budget for revenues is: a. $240,000 b. $12,000 c. $720,000 d. $220,000 e. None of the above. 24. A flexible budget is better than a master budget for comparing actual performance and budgeted performance because: a. Variable items such as revenue and certain costs will differ in total b. When the actual level of production or sales is achieved C., Static budget does not consider environmental changes as they happen d. All of the above. E. None of the above. Webb Company has three variable costs for its jacket. The budgeted variable costs per jacket are as follows: Cost Category Variable Cost per Jacket Direct material cost $60 Direct manufacturing labor costs 16 Variable manufacturing overhead costs 12 Total Variable Costs $88 The relevant range for the cost driver is from 0 to 12,000 jackets. The budgeted and actual data for April 2018 are as follows: Budgeted fixed costs for production between 0 and 12,000 jackets $976,000 Budgeted Selling price per jacket is $110 Budgeted production and sales 12,000 jackets Actual production and sales 10,000 jackets. 19. Fixed Costs Variance is: a. $84,100 b. $144,000 c. $13,500 d. None of the above. 20. The unfavorable static budget variance for operating income is: a. $108,000 b. $114,000 c. $28,000 d. $220,000 Webb Company has three variable costs for its jacket. The budgeted variable costs per jacket are as follows: Cost Category Variable Cost per Jacket $60 Direct material cost Direct manufacturing labor costs 16 Variable manufacturing overhead costs 12 Total Variable Costs $88 The relevant range for the cost driver is from 0 to 12,000 jackets. The budgeted and actual data for April 2018 are as follows: Budgeted fixed costs for production between 0 and 12,000 jackets Budgeted Selling price per jacket is Budgeted production and sales Actual production and sales $976,000 $110 12,000 jackets 10,000 jackets Using the same information in Webb Company's Data answer questions 21, 22, 23 & 24. Recall that actual level of performance is 10,000 units of jackets produced and sold. You are to flex the budget to reflect that actual level of performance 21. The flexible materials amount for Webb Company at 10,000 level is: a. $621,000 b. $600,000 c. $800,000 d. 1,200,00 e. None of the above. 22. The flexible budget for Direct labor at 10,000 level of performance is: a. $140.000 b. $170,000 c. $160,000 d. $300,000 e. None of the above. 23. The variance between static and flexible budget for revenues is: a. $240,000 b. $12,000 c. $720,000 d. $220,000 e. None of the above. 24. A flexible budget is better than a master budget for comparing actual performance and budgeted performance because: a. Variable items such as revenue and certain costs will differ in total b. When the actual level of production or sales is achieved C., Static budget does not consider environmental changes as they happen d. All of the above. E. None of the above

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