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Bexley Company produces retractable pens.

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Question;1. Bexley Company produces retractable pens. November budgeted production costs are given below:Pens to be produced 100,000Direct material (variable) $33,000Direct Labor (variable) $48,000Supplies (variable) $27,500Supervision (fixed) $40,000Depreciation (fixed) $20,000Other (fixed) $10,000In December, Bexley expects to produce 90,000 pens. Assuming no structural changes, what is Bexley?s budgeted production cost per pen for December?A) $1.72B) $1.85C) $1.89D) $1.932. Use the cost information in (1) above. In November, the actual direct labor costs were $46,000 and Bexley produced and sold 90,000 pens. The direct labor performance variance (difference) is:A) $5,000 unfavorable.B) $2,800 unfavorable.C) $1,000 unfavorable.D) $5,000 favorable.3. Bubba?s steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be sold: Materials, $4,080, hourly labor (variable), $5,200, rent (fixed), $1,720, depreciation, $600, and other fixed costs, $550. Each dinner sells for $12.60. How much would Bubba?s profit increase if 10 more dinners were sold?A) $68.B) $72.C) $52.D) $126.

 

Paper#48969 | Written in 18-Jul-2015

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