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##### 6 accounting questions relating to Flexible budgets and standard costing

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6 accounting questions relating to Flexible budgets and standard costing;Question 3;A company established a direct material standard of 2 pounds of material at a cost of \$6 per pound for unit produced. During August the company produced 6,000 units of product. 10,000 pounds of direct material which cost \$6.50 per pound were used in the production process. Compute the direct material quantity variance for August.;Answers;a.;\$5,000 unfavorable.;b.;\$12,000 unfavorable.;c.;\$5,000 favorable.;d.;\$12,000 favorable.;e.;\$7,000 favorable.;Question 5;Product A has a sales price of \$10 per unit. Based on a 10,000-unit production level, the variable costs are \$6 per unit and the fixed costs are \$3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?;Answers;a.;\$12,500;b.;\$25,000;c.;\$20,000;d.;\$30,000;e.;\$35,000;Question 6;Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is \$12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of \$250,376. What is Bartels' total labor variance for August?;Answers;a.;\$10,376 unfavorable.;b.;\$2,104 unfavorable.;c.;\$2,104 favorable.;d.;\$12,480 unfavorable.;e.;\$12,480 favorable.;Question 8;Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is \$12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of \$250,376. What is Bartels' labor rate variance for August?;Need answer;Question 9;Actual fixed overhead for Kapok Company during March was \$92,780. The flexible budget for fixed overhead this period is \$89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed overhead volume variance for March?;Answers;a.;\$3,780 favorable.;b.;\$18,020 unfavorable.;c.;\$14,240 unfavorable.;d.;\$3,780 unfavorable.;e.;\$14,240 favorable.;? Question 10;A company's flexible budget for 12,000 units of production showed sales, \$48,000, variable costs, \$18,000, and fixed costs, \$16,000. The operating income expected if the company produces and sells 16,000 units is;Answers;a.\$2,667;b.\$14,000;c.\$18,667;d.\$24,000;e.\$35,000

Paper#31125 | Written in 18-Jul-2015

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