Question Details

Which department is often responsible for the direct materials 



1. 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.
A. $110,500.
B. $85,000.
C. $133,000.
D. $100,000.
E. $50,500.
2. Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting
operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000.
Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would
be:
A. $10,000 of fixed costs and $72,000 of variable costs.
B. $10,000 of fixed costs and $90,000 of variable costs.
C. $12,500 of fixed costs and $90,000 of variable costs.
D. $12,500 of fixed costs and $72,000 of variable costs.
E. $10,000 of fixed costs and $81,000 of variable costs.
3. 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.
4. Kyle, Inc. has collected the following data on one of its products. The actual cost of the direct materials
Direct material standard (4 lbs. @ $1/lb.)	$4 per finished unit 
Total direct materials cost variance-unfavorable	$ 13,750
Actual direct materials used 	150,000 lbs.
Actual finished units produced	30,000 units


used is:
A. $133,750.
B. $150,000.
C. $106,250.
D. $158,750.
E. $120,000.

5. Kyle, Inc. has collected the following data on one of its products. The direct materials quantity variance


Direct material standard (4 lbs. @ $1/lb.)	$4 per finished unit 
Total direct materials cost variance-unfavorable	$ 13,750
Actual direct materials used 	150,000 lbs.
Actual finished units produced	30,000 units

is:
A. $30,000 favorable.
B. $13,750 unfavorable.
C. $16,250 favorable.
D. $30,000 unfavorable.
E. $13,750 favorable.




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