Answer the following questions using the information below:

 

Dynondo Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit, and planned to make 1,500 units but actually made 1,800 units.

 

14) The flexible-budget amount for materials is ________.

A) $18,000

B) $19,500

C) $21,600

D) $23,400

 

15) The flexible-budget variance for materials is ________.

A) $1,500 favorable

B) $1,800 unfavorable

C) $1,500 unfavorable

D) $1,800 favorable

16) The sales-volume variance for materials is ________.

A) $3,600 favorable

B) $3,900 unfavorable

C) $3,600 unfavorable

D) $3,900 favorable

 

Answer the following questions using the information below:

 

Aurous Incorporated planned to use $35 of material per unit but actually used $34 of material per unit, and planned to make 1,500 units but actually made 1,300 units.

 

17) The flexible-budget amount for materials is ________.

A) $45,500

B) $52,500

C) $51,000

D) $44,200

 

18) The flexible-budget variance for materials is ________.

A) $1,500 favorable

B) $1,500 unfavorable

C) $1,300 unfavorable

D) $1,300 favorable

 

19) The sales-volume variance for materials is ________.

A) $7,000 favorable

B) $7,000 unfavorable

C) $6,800 unfavorable

D) $6,800 favorable

20) Lunicious Corporation currently produces baseball caps in an automated process. Expected production per month is 15,000 units, direct material costs are $3.50 per unit, and manufacturing overhead costs are $40,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 12,000 and 15,000 units, respectively?

A) $74,000; $92,500

B) $74,000; $84,500

C) $82,000; $92,500

D) $82,000; $84,500

 

Answer the following questions using the information below:

 

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

 

ActualFlexibleStatic

ResultsBudgetBudget

Sales volume (in units)12,000      15,000

 

Sales revenues$600,000$$750,000

Variable costs307,200$ ________360,000

 

Contribution margin292,800$390,000

 

Fixed costs274,800$ ________270,000

Operating profit$ 18,000$       $ 120,000

 

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

A) $245,760

B) $360,000

C) $288,000

D) $384,000

22) The flexible budget will report ________ for the fixed costs.

A) $343,500

B) $270,000

C) $274,800

D) $216,000

 

23) The flexible-budget variance for variable costs is ________.

A) $19,200 unfavorable

B) $61,440 unfavorable

C) $52,800 favorable

D) $76,800 favorable