The following data are for Bob Corporation: $\begin{array}{ccc} && & \text { Flexible } \\ && & \text { Budget for } \\ && \text { Static } & \text { Actual Sales } \\ &\text { Actual } &\text { Budget } & \text { Activity }\\\hline \text { Units } & 18,000 & 16,000 & 18,000 \\ \text { Sales } & \$ 360,000 & \$ 320,000 & \$ 360,000 \\ \text { Variable costs } & 234,000 & 192,000 & 216,000 \\ \text { Contribution margin } & \$ 126,000 & \$ 128,000 & \$ 144,000 \\ \text { Fixed costs } & 76,000 & 80,000 & 80,000 \\ \text { Operating income } & \$ 50,000 & \$ 48,000 & \$ 64,000 \\ \end{array}$ The total of the sales-activity variances is _____.

A) $16,000 favorable B) $16,000 unfavorable C) $14,000 favorable D) $14,000 unfavorable A) $16,000 favorable B) $16,000 unfavorable C) $14,000 favorable D) $14,000 unfavorable

The following data are for Point Corporation: $\begin{array}{ccc} && & \text { Flexible } \\ && & \text { Budget for } \\ && \text { Static } & \text { Actual Sales } \\ &\text { Actual } &\text { Budget } & \text { Activity }\\\hline \text { Units } & {18,000}& \underline{16,000} & \underline{18,000} \\ \text { Sales } & \$ 360,000 & \$ 320,000 & \$ 360,000 \\ \text { Variable costs } & 234,000 & 192,000 & 216,000\\ \text { Contribution margin } & \$ \overline{126,000} & \$ \overline{128,000} & \$ 144,000 \\ \text { Fixed costs } & \underline{76,000} & \underline{80,000} & \underline{80,000} \\ \text { Operating income } & \$ 50,000 & \$ 48,000 & \$ 64,000 \end{array}$ The total of the flexible?budget variances is _____.

A) $14,000 favorable B) $14,000 unfavorable C) $2,000 favorable D) $2,000 unfavorable A) $14,000 favorable B) $14,000 unfavorable C) $2,000 favorable D) $2,000 unfavorable

The Petunia Company makes mugs for which the following standards have been developed: $\begin{array}{cc} &\text { Standard Inputs } & \text { Standard Frice } \\ &\text { Expected for Each } & \text { Expected per } \\ &\text { Unit of Output } & \text { Unit of Output }\\ \text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\ \text { Direct labor } & 2.5 \text { hours } & \$ 8 \text { per hour } \end{array}$ Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct-labor cost for the month was $5,310, and the actual pay per hour was $9.00._____ is the standard labor cost for each mug produced.

A) $22.50 B) $20 C) $10 D) $1 A) $22.50 B) $20 C) $10 D) $1

Given the following data: $\begin{array}{cl} &\text { Direct } & \text { Direct } \\ &\text { Material } & \text { Labor }\\ \text { Standard price per unit of input } & \$ 12 \text { per foot } & \$ 14 \text { per hour } \\ \text { Actual price per unit of input } & \$ 14 \text { per foot } & \$ 13 \text { per hour } \\ \text { Standard inputs allowed per unit } & &\\ \text { of output } & 5 \text { feet } & 3 \text { hours } \\ \text { Actual units of input } & 2,500 \text { feet } & 1,550 \text { hours }\\ \text { Actual units produced }&600 \text { units } \end{array}$ Required: Compute the price, quantity and flexible?budget variances for direct material and labor.Indicate whether each variance is favorable or unfavorable.

Direct material: Price variance = $14 ?

The Red Company makes mugs for which the following standards have been developed: $\begin{array}{cc} &\text { Standard Inputs } & \text { Standard Frice } \\ &\text { Expected for Each } & \text { Expected per } \\ &\text { Unit of Output } & \text { Unit of Output }\\ \text { Direct materials } & 5 \text { ounces } & \$ 2 \text { per ounce } \\ \text { Direct labor } & 1.5 \text { hours } & \$ 8 \text { per hour } \end{array}$ Production of 400 Mugs was expected in June, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce.Direct-labor cost for the month was $5,310, and the actual pay per hour was $9.00._____ is the direct-labor quantity variance for the month of June.

A) $1,560 favorable B) $1,560 unfavorable C) $1,800 favorable D) $1,800 unfavorable A) $1,560 favorable B) $1,560 unfavorable C) $1,800 favorable D) $1,800 unfavorable

The Charger Company makes tables for which the following standards have been developed: $\begin{array}{cc} &\text { Standard Inputs } & \text { Standard Frice } \\ &\text { Expected for Each } & \text { Expected per } \\ &\text { Unit of Output } & \text { Unit of Output }\\\hline \text { Direct materials } & 10 \text { pounds } & \$ 4 \text { per pound } \\ \text { Directlabor } & 3 \text { hours } & \$ 16 \text { per hour } \end{array}$ Production of 230 tables was expected in July, but 250 tables were actually completed. Direct materials purchased and used were 2,200 pounds at an actual price of $4.50 per pound.Direct-labor cost for the month was $10,620, and the actual pay per hour was $18.00._____ is the direct-material price variance for July.

A) $1,100 unfavorable B) $1,100 favorable C) $800 unfavorable D) $800 favorable A) $1,100 unfavorable B) $1,100 favorable C) $800 unfavorable D) $800 favorable

The following data are for Newhart Corporation: $\begin{array}{ccc} && & \text { Flexible } \\ && & \text { Budget for } \\ && \text { Static } & \text { Actual Sales } \\ &\text { Actual } &\text { Budget } & \text { Activity }\\\hline \text { Units } & 18,000 & 16,000 & 18,000 \\ \text { Sales } & \$ 360,000 & \$ 320,000 & \$ 360,000 \\ \text { Variable costs } & 234,000 & 192,000 & 216,000 \\ \text { Contribution margin } & \$ 126,000 & \$ 128,000 & \$ 144,000 \\ \text { Fixed costs } & 76,000 & 80,000 & 80,000 \\ \text { Operating income } & \$ 50,000 & \$ 48,000 & \$ 64,000 \\ \end{array}$ The total of the master budget variances is _____.

A) $16,000 favorable B) $16,000 unfavorable C) $2,000 unfavorable D) $2,000 favorable A) $16,000 favorable B) $16,000 unfavorable C) $2,000 unfavorable D) $2,000 favorable