Reference no: EM13573879

1.Marjorie Jewels, a maker of fashionable rings, produced and sold 6,000 rings during the recent accounting period. The company had expected to sell 5,600 rings. Because of competition, the company priced the rings at $20 each, $2 lower than the budgeted selling price. Based on this information, there is

a.a favorable $8,000 sales volume variance.

b.an unfavorable $800 total sales variance.

c.an unfavorable sales price variance.

d.all of the above.

Use the following information to answer the next two questions: Bright Smile, Inc. (BSI) makes a bleach that is used to whiten teeth. BSI expects to use 2 ounces of Exeron per bottle of whitener. Exeron is expected to cost $0.20 per ounce. Actual materials cost amounted to $0.23 per ounce. BSI expected to make and sell 1,000,000 bottles of whitener during the accounting period. BSI actually used 2,047,500 ounces to produce 1,050,000 bottles.

2. The materials price variance for Exeron is

a.$61,425 unfavorable.

b.$61,425 favorable.

c.$20,000 favorable.

d.$20,000 unfavorable.

3.The materials usage variance for Exeron is

a.$3,000 unfavorable.

b.$3,000 favorable.

c.$10,500 favorable.

d.$10,500 unfavorable.

4. SBC Company expected to make 24,000 units of product during 2011. SBC actually produced 24,500 units of product. The fixed cost predetermined overhead rate was $2.40 per unit. Actual fixed overhead costs were $58,800. Based on this information the

a. fixed cost overhead spending variance is $1,200 unfavorable.

b. fixed cost overhead volume variance is $1,200 favorable.

c. the total overhead cost variance is $2,400 favorable.

d. both a & b.