1. Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?
A- Direct materials cost
B- Direct labor cost
C- Variable manufacturing overhead
D- Fixed manufacturing overhead
2. The Chambers Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the variable cost per machine hour using the high-low method to estimate the cost equation?
3. Southern Company’s budgeted and actual sales for 2009 were:
X-20,000 Units at $5.00 per unit
Y-35,000 Units at $9.00 per unit
X-17,500 Units at $5.30 per unit
Y-17,300 Units at $8.30 per unit
What is the total sales variance for the two products?
A- $2,210 Favorable
B- $5,990 Favorable
C- $6,990 Favorable
D- $8,200 Favorable
4. Southern Company manufactures Product X. The standard cost of one unit of output is $12.00 (four pieces at $3.00 per piece). During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces were $3.50 per piece). What is the material price variance?
A- $7,500 Favorable
B- $10,000 Favorable
C- $7,500 Unfavorable
D- $10,000 Unfavorable