Multiple choice budgeting and forecasting questions

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(TCO 9) The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the total estimated cost for 2,600 machine hours using the high-low method to estimate the cost equation? (Points : 4)

$9,730
 $9,606
 $9,106
 $8,788

Question 4.4. (TCO 8) Southern Company’s budgeted and actual sales for 2009 were:
 

Product

Budgeted Sales

Actual Sales

X

20,000 units at $5.00 per unit

17,500 units at $5.30 per unit

Y

35,000 units at $9.00 per unit

37,300 units at $8.80 per unit

 
What is the total sales variance for the two products? (Points : 4)

$2,210 Favorable
 $5,990 Favorable
 $6,990 Favorable
 $8,200 Favorable

Question 5.5. (TCO 8) Southern Company manufactures Product X.  The standard cost of one unit of output is $12.00 (four pieces at $3.00 per piece).  During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces were $3.50 per piece).  What is the material price variance? (Points : 4)

$7,500 Favorable
 $10,000 Favorable
 $7,500 Unfavorable
 $10,000 Unfavorable

(PLEASE DOUBLE CHECK WORK/ANSWER  AND MAKE SURE IT’S 110% CORRECT! FINAL ANSWER CAN ONLY BE SUBMITTED ONCE. THANK YOU!)  🙂


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