Reference no: EM133103832
Questions -
Q1. Lavoie Company planned to use 18,500 pounds of material costing $2.50 per pound to make 4,000 units of its product. In actually making 4,000 units, the company used 18,800 pounds that cost $2.54 per pound. Calculate the direct materials price variance.
Q2. The fixed budget for 15,000 units of production shows sales of $300,000; variable costs of $180,000; and fixed costs of $90,000. If the company actually produces 18,000 units, calculate the flexible budget income.
Q3. A company's flexible budget for 60,000 units of production showed sales of $96,000, variable costs of $36,000, and fixed costs of $26,000. What income would be expected if the company produces and sells 70,000 units?
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