• Question 21 Which of the following is a characteristic of a flexible budget ?
• Question 22 All else being equal , the breakeven point in units will be higher if
• Question 23 The ratio of fixed costs to the contribution margin is
• Question 24 Oslo Co .’ s industrial photo-finishing division , Rho , incurred the following costs and expenses in 2012 :
• Question 25 Crisper , Inc . plans to sell 80,000 bags of potato chips in June , and each of these bags requires five potatoes . Pertinent data includes :
• Question 26 At annual sales of $ 900,000 , the Ebo product has the following unit sales price and costs :
• Question 27 Which of the following is a disadvantage of participative budgeting ?
• Question 28 For the current period production levels , Woodwork Co . budgeted 11,000 board feet of production and purchased 15,000 board feet . The material cost was budgeted at $ 7 per foot . The actual cost for the period was $ 8.50 per foot . What was Woodwork ’ s material price variance for the period ?
• Question 29 In the past , four direct labor hours were required to produce each unit of product Y . Material costs were $ 200 per unit , the direct labor rate was $ 20 per hour , and factory overhead was 3 times direct labor cost . In budgeting for next year , management is planning to outsource some manufacturing activities and to further automate others . Management estimates that these plans will reduce labor hours by 25 %, increase the factory overhead rate to 3.6 times direct labor costs , and increase material costs by $ 30 per unit . Management plans to manufacture 10,000 units . What amount should management budget for cost of goods manufactured ?
• Question 30 A company produces widgets with budgeted standard direct materials of 2 pounds per widget at $ 5 per pound . Standard direct labor was budgeted at 0.5 hour per widget at $ 15 per hour . The actual usage in the current year was 25,000 pounds and 3,000 hours to produce 10,000 widgets . What was the direct labor usage variance ? ===================================================