51. 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...

51. 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. $102,500 fixed and $150,000 variable.
D. $150,000 fixed and $123,000 variable.
E. $150,000 fixed and $102,500 variable.

52. Based on predicted production of 22,000 units, a company anticipates $15,000 of fixed costs and $27,500 of variable costs. The flexible budget amounts of fixed and variable costs for 16,000 units are:
A. $10,910 fixed and $20,000 variable.
B. $10,910 fixed and $27,500 variable.
C. $20,000 fixed and $15,000 variable.
D. $15,000 fixed and $20,000 variable.
E. $15,000 fixed and $27,500 variable.

53. Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?
A. $12,500
B. $25,000
C. $20,000
D. $30,000
E. $35,000

54. Which department is often responsible for the direct materials price variance?
A. The accounting department.
B. The production department.
C. The purchasing department.
D. The finance department.
E. The budgeting department.

Reference: 21_01

Five Rings, Inc, has collected the following data on one of its products:

55. The actual cost of the direct materials used is:
A. $133,750
B. $150,000
C. $106,250
D. $158,750
E. $120,000

56. The direct materials quantity variance is:
A. $30,000 favorable
B. $13,750 unfavorable
C. $16,250 favorable
D. $30,000 unfavorable
E. $13,750 favorable

57. The direct materials price variance is:
A. $13,750 unfavorable
B. $16,250 unfavorable
C. $16,250 favorable
D. $30,000 unfavorable

E. $33,000 favorable

58. The entry to record the material variances would include a:

A. Credit to Goods in Process for $133,750.

B. Debit to Direct Material Price Variance for $13,750.

C. Credit to Direct Material Quantity Variance for $13,750.

D. Debit to Goods in Process for $120,000.

E. Debit to Raw Materials for $120,000.

Reference: 21_02

Kermit Enterprises has collected the following data on one of its products:

59. The direct materials quantity variance is:
A. $30,000 favorable
B. $30,000 unfavorable
C. $22,500 favorable
D. $37,500 unfavorable
E. $37,500 favorable

60. The direct materials price variance is:

A. $30,000 favorable
B. $30,000 unfavorable
C. $22,500 favorable
D. $37,500 unfavorable
E. $37,500 favorable