Lu-1 Lu-2 The third column is: Sales( in


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Could you help me to look at my answers in the attachment? Thanks Jing Lu.doc Lu-1 Lu-2 The third column is: Sales( in units) 18,000 Variable costs 1,782,000 Contribution margin 1,818,000 Fixed costs 1,365,000 Operating income 462,000 So operating income increase 462,000-159,000=303,000 3. Brewer Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership’s sales price variance for the month. a. $10,000 favorable. b. $32,000 unfavorable. c.$22,000 unfavorable. d $32,000 favorable. 4. Overhead cost variance is: d a. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. b. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit c. The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate. d. The difference between the actual overhead incurred during a period and the standard overhead applied. e.The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service. 5. Lu-3 Lu-4 7. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are: a. $125,000 fixed and $102,500 variable. b. $125,000 fixed and $123,000 variable. c. $150,000 fixed and $123,000 variable. d. $150,000 fixed and $102,500 variable. 8. Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels’ standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels’ labor rate variance for August? Lu-5 a. $4,160 favorableb. $2,000 favorablec. $2,104 favorabled.$2,000 unfavorable9. 10. 11. A company’s flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000- Calculate the expected level of operating income if the company produces and sells 13,000 units- Lu-6 a. $85,000. b. $50,500. c. $110,500. d.$133,000. 12. 13. 14. Lu-7 15. An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as: a. Controllable management. b. Management by exception. c. Management by variance. d. Performance management. e. Management by objectives. 16 17. Lu-8 18. 19. A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called: a. Cost analysis. b. Cost variable analysis. c. Variable analysis. d. Flexible budgeting. e. Variance analysis. Read more

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