49) A favourable sales-activity variance means that

A) managers have been efficient in the implementation of a sales budget.

B) managers have been effective in accomplishing a planned sales level.

C) demand for the company product is strong.

D) the sales force has done an excellent job.

The following data are for Parker Corporation for 20X4.

  Actual 

Master

Budget  

Flexible Budget for Actual Sales Activity   

Units

    18,000 

    16,000

     18,000

Sales

$180,000

$160,000

$180,000

Variable costs

  117,000

     96,000

   108,000

Contribution margin

$  63,000

$   64,000

$   72,000

Fixed costs

    38,000

     40,000

     40,000

Operating income

$  25,000

$   24,000

$   32,000

50) The total of the flexible-budget variances is

A) $7,000 favourable.

B) $7,000 unfavourable.

C) $1,000 favourable.

D) $1,000 unfavourable.

51) The total of the sales-activity variances is

A) $8,000 favourable.

B) $8,000 unfavourable.

C) $7,000 favourable.

D) $7,000 unfavourable.

52) The total of the master-budget variances is

A) $8,000 favourable.

B) $8,000 unfavourable.

C) $1,000 unfavourable.

D) $1,000 favourable.

The following information is for Doran Corporation:

Direct  Material

Standard price per unit of input*

$10

Actual price per unit of input

$ 9

Standard inputs allowed per unit of output

2 pounds

Actual units of input

31,000 pounds

Actual units of output

15,000 units

*Direct material is measured in pounds

53) The price variance for direct material is

A) $30,000 favourable.

B) $30,000 unfavourable.

C) $31,000 unfavourable.

D) $31,000 favourable.

54) The usage variance for direct material is

A) $10,000 unfavourable.

B) $9,000 unfavourable.

C) $9,000 favourable.

D) $10,000 favourable.

55) The total flexible-budget variance for direct material is

A) $21,000 unfavourable.

B) $21,000 favourable.

C) $40,000 favourable.

D) $40,000 unfavourable.

The following information pertains to Finger Company:

Direct  Labour

Standard price per unit of input*

$20

Actual price per unit of input

$22

Standard inputs allowed per unit of output

2 hours

Actual units of input

9,500 hours

Actual units of output

5,000 units

*Direct labour is measured in hours

56) The price variance for direct labour is

A) $20,000 favourable.

B) $20,000 unfavourable.

C) $19,000 favourable.

D) $19,000 unfavourable.

57) The direct-labour usage variance is

A) $11,000 favourable.

B) $11,000 unfavourable.

C) $10,000 favourable.

D) $10,000 unfavourable.

58) The total flexible-budget variance for direct labour is

A) $ 9,000 unfavourable.

B) $ 9,000 favourable.

C) $30,000 unfavourable.

D) $30,000 favourable.

The Clamen Company makes table lamps, for which the following standards have been developed:

Standard Inputs Expected for Each    Unit of Output  

Standard Price Expected per

Unit of Output

Direct materials

20 pounds

$2 per pound

Direct labour

6 hours

$8 per hour

During October, production of 100 lamps was expected, but 110 lamps were actually completed.

Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound.

Di



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