ct.mheducation.com/flow/connect.html Multiple Choice CH. 21, 23, 24 Based on a p

Question

ct.mheducation.com/flow/connect.html Multiple Choice CH. 21, 23, 24 Based on a predicted level of production and sales of 12.000 units, a company anticipates reporting operating income of $28,000 after deducting variable costs of $72.000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be: Multiple Choice $8,000 of foed costs and $81000 of variable costs f ten $10000 of foed costs and $72,000 of variable costs $8,000 of fxed costs and $90,000 of variable costs of fsed costs end $72,000 of varisble costs $8.000 of fixed costs and $72.000 of variable costs Parents Day Sale Get Bytefence Pro at a 60% Discount. $10.000 of fixed costs and $90,000 of variable costs here to

Explanation / Answer

1)

correct option is "C"

Fixed does not vary with output so it will remain same at 15000 units equals to $ 8000 .and variable cost will be [72000*15000/12000] =$ 90000

2)correct option is "A" -1500U

controllable variance = Actual overhead- budgeted overhead based on actual output

          =22740 - [(7*1800)variable +8640]

.       = 22740- 21240

          = 1500U

3)Correct option is "A"

Direct material quatity variance =SR[AQ-SQ]

            = 1[125000-(25000*4)]

           = 1[125000- 100000]

          = 25000 U

4)correct option is "C" -110200

contribution margin at flexible budget =sales -variable cost

      = 76800-16000

        = 60800

contribution margin at 29000 units = 60800*29000/16000 =   110200

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