Answer the following questions using the information below: Coroid Corporation used the following data to evaluate their current operating system. The company sells items for $11 each and had used a budgeted selling price of $12 per unit. \[\begin{array} { l r r } & \underline { \text { Actual } } & \text { Budgeted } \\ \text { Units sold } & 280,000 \text { units } & 275,000 \text { units } \\ \text { Variable costs } & \$ 900,000 & \$ 885,000 \\ \text { Fixed costs } & \$ 55,000 & \$ 52,000 \end{array}\] -What is the static-budget variance of operating income?

A) $238,000 favorable B) $238,000 unfavorable C) $235,000 favorable D) $235,000 unfavorable A) $238,000 favorable B) $238,000 unfavorable C) $235,000 favorable D) $235,000 unfavorable

The president of the company,Gregory Peters,has come to you for help.Use the following data to prepare a flexible budget for possible sales/production levels of 10,000,11,000,and 12,000 units.Show the contribution margin at each activity level. $\begin{array}{ll} \text { Sales price } & \$ 24 \text { per unit } \\ \text { Variable costs: } & \\ \text { Manufacturing } & \$ 12 \text { per unit } \\ \text { Administrative } & \$ 3 \text { per unit } \\ \text { Selling } & \$ 1 \text { per unit }\\\text { Fixed costs: }\\ \text { Manufacturing } & \$ 60,000 \\ \text { Administrative } & \$ 20,000 \end{array}$

The answer of The president of the company,Gregory Peters,has come...

Answer the following questions using the information below: The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results. $\begin{array}{lrrr}&\begin{array}{r} \text { Actual } \\ \text { Results } \end{array} & \begin{array}{r} \text { Flexible } \\ \text { Budget } \end{array} & \begin{array}{r} \text { static } \\ \text { Budget } \end{array}\\ \text { Sales volume (in units) } & 12,000 & & 15,000 \\ \text { Sales revenues } & \$ 600,000 & \$ & \$ 750,000 \\ \text { Variable costs } & 307,200 & \$ & 360,000\\ \text { Contribution margin }&292,800&\$&7390,000\\\text { Fixed costs } & 274,800& \$ & 270,000 \\ \text { Operating profit } & \$ 18,000 & \$ & \$ 120,000 \end{array}$ -The flexible-budget variance for variable costs is ________.

A) $19,200 unfavorable B) $61,440 unfavorable C) $52,800 favorable D) $76,800 favorable A) $19,200 unfavorable B) $61,440 unfavorable C) $52,800 favorable D) $76,800 favorable

Answer the following questions using the information below: Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. $\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\\ & \text { Budget } & \text { Price } & \text { Efficiency } \\ \text { Material A } & \$ 40,000 & \$ 1,000 \mathrm{~F} & \$ 3,000 \mathrm{U} \\ \text { Material B } & 60,000 & 500 \mathrm{U} & 1,500 \mathrm{~F} \\ \text { Direct manufacturing labor } & 80,000 & 500 \mathrm{U} & 2,500 \mathrm{~F} \end{array}$ -The most likely explanation of the above variances for Material A is that ________.

A) a lower price than expected was paid for Material A B) higher-quality raw materials were used than were planned C) the company used a higher-priced supplier D) Material A used during September was $2,000 less than expected A) a lower price than expected was paid for Material A B) higher-quality raw materials were used than were planned C) the company used a higher-priced supplier D) Material A used during September was $2,000 less than expected

Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container. $\begin{array}{lll}&\text { Budgeted quantity }&\text { Budgeted price }\\ \text { Direct materials } & 0.30 \text { pounds } & \$ 20 \text { per pound } \\ \text { Direct labor } & 0.20 \text { hours } & \$ 12 \text { per hour } \end{array}$ During July, GII produced and sold 3,000 containers using 1,000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour. -July's direct material flexible-budget variance is ________.

A) $1,000 unfavorable B) $2,000 favorable C) $2,500 unfavorable D) $0 A) $1,000 unfavorable B) $2,000 favorable C) $2,500 unfavorable D) $0

Answer the following questions using the information below: Genent Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data: $\begin{array}{|l|r|r|r|r|r|} \hline &\text { Actual } & \text { Flexible Budget } & \text { Flexible } & \text { Sales-Volume } & \text { Static } \\ &\text { Results } & \text { Variances } & \text { Budget } & \text { Variances } & \text { Budget } \\ \hline\text { Units sold } & 495,000 & & 495,000 & & 453,750 \\ \hline \text { Revenues } & \$ 185,150 & \$ 4,400 \mathrm{~F} & (\mathrm{~A}) & \$ 6,160 \mathrm{U} & (\mathrm{B}) \\ \hline \text { Variable } & & & & & \\ \text { costs } & (\mathrm{C}) & \$ 880 \mathrm{U} & \$ 69,780 & \$ 10,300 \mathrm{~F} & \$ 88,080 \\ \hline \text { Fixed costs } & \$ 36,430 & \$ 3,770 \mathrm{~F} & \$ 40,200 & 0 & \$ 40,200 \\ \hline \text { Operating } & & & & & \\ \text { income } & \$ 78,060 & (\mathrm{D}) & \$ 70,770 & (\mathrm{E}) & \$ 66,630\\\hline \end{array}$ -What is the total flexible-budget variance (D)?

A) $240 unfavorable B) $0 C) $1,360 favorable D) $7,290 favorable A) $240 unfavorable B) $0 C) $1,360 favorable D) $7,290 favorable

The actual information pertains to the third quarter.As part of the budgeting process,the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter.Duck Decoy is in the process of preparing the flexible budget and understanding the results. $\begin{array}{lccc} & \text { Actual } & \text { Flexible } & \text { Static } \\ & \text { Results } & \text { Budget } & \text { Budget } \\ \text { Sales volume (in units) } & 11,000 & & 10,000\\\\ \text { Sales revenues } & \$ 238,000 & \$ & \$230,000 \\ \text { Variable costs } & 150,000 & \$ & 180,000\\\\ \text { Contribution margin }& 88,000& \$ &50,000\\\\ \text { Fixed costs } & 36,000 & \$ & 35,000\\ \text { Operating profit } & \$ 52,000& \$& \$ 15,000 \end{array}$ The primary reason for high actual operating profits was ________.

A) the variable-cost variance B) increased fixed costs C) flexible budget variance for revenues D) lower sales volume than planned A) the variable-cost variance B) increased fixed costs C) flexible budget variance for revenues D) lower sales volume than planned

Demizio Valley Orchards, Inc. (DVO), developed standard costs for direct material and direct labor. In 2015, DVO estimated the following standard costs for one of their most well loved products, the DVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. $\begin{array}{lll}&\text { Budgeted quantity } &\text {Budgeted price }\\ \text { Direct materials } & 2.0 \text { pounds } & \$ 6.25 \text { per pound } \\ \text { Direct labor } & 0.20 \text { hours } & \$ 13.00 \text { per hour } \end{array}$ During September, DVO produced and sold 1,100 pies using 2,300 pounds of direct materials at an average cost per pound of $6.00 and 200 direct labor hours at an average wage of $13.25 per hour. -September's direct material flexible-budget variance is ________.

A) $100.00 unfavorable B) $150.00 favorable C) $50.00 unfavorable D) $575 favorable A) $100.00 unfavorable B) $150.00 favorable C) $50.00 unfavorable D) $575 favorable