Question 1

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:

Accepted Answer

A)   $34,000.
B)   $10,000.
C)   $18,667.
D)   $16,000.
E)   $24,000.F) All of the above
G) C) and E)

Question 2

In producing 700 units of product last period, Azure Company used 5,000 pounds of Material K, costing $34,250. The company has established the standard of using 7.2 pounds of Material K per unit of product, at a price of $7.50 per pound. Calculate the materials price and quantity variances associated with producing the 700 units, and indicate whether they are favorable or unfavorable:

Accepted Answer

The answer of In producing 700 units of product last...

Exam 8: Flexible Budgets and Standard Costs

Correct Answer
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A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:

Correct Answer
verified

Exam 8: Flexible Budgets and Standard Costs

Correct AnswerverifiedShow Answer

A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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