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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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