Reference no: EM132744674

Questions -

Q1. Which of the following is an example of a mixed cost?

a. rental costs of $10,000 per month plus $0.30 per machine hour of use

b. electricity costs of $3 per kilowatt-hour

c. straight-line depreciation on factory equipment

d. salary of a factory supervisor

Q2. If fixed costs are $798,000 and variable costs are 60% of sales, the break-even point in sales dollars is

a. $2,793,000

b. $1,995,000

c. $1,276,800

d. $478,800

Q3. Tippi Company produces lamps that require 2.25 standard hours per unit at a standard hourly rate of $15.00 per hour. Production of 7,700 units required 17,550 hours at an hourly rate of $15.20 per hour.

What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? Enter favorable variances as negative numbers.

a. Direct labor rate variance $? FAVORABLE/UNFAVORABLE

b. Direct labor time variance $? FAVORABLE/UNFAVORABLE

c. Total direct labor cost variance $? FAVORABLE/UNFAVORABLE

Q4. Laurie Inc.'s static budget for 10,000 units of production includes $60,000 for direct materials, $44,000 for direct labor, fixed utilities costs of $5,000, and supervisor salaries of $25,000. A flexible budget for 12,000 units of production would show

a. the same cost structure in total

b. total variable costs of $159,800

c. direct materials of $72,000, direct labor of $52,800, fixed utilities of $5,000, and supervisor salaries of $25,000

d. direct materials of $60,000, direct labor of $52,800, fixed utilities of $6,000, and supervisor salaries of $25,000

Q5. Production and sales estimates for March for Robin Co. are as follows:

Estimated inventory (units), March 117,000

Desired inventory (units), March 3119,000

Expected sales volume (units):

Territory M 6,000

Territory L 9,700

Territory L 7,800

Unit sales price $15

The number of units expected to be manufactured in March is

a. 25,500

b. 23,500

c. 42,500

d. 59,500