1. (TCO 9) Which of the following is a variable cost?
Direct materials
Depreciation
Lease charge
Property taxes


Question 2.2. (TCO 9) Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?
Direct materials cost
Direct labor cost
Variable manufacturing overhead
Fixed manufacturing overhead


Question 3.3. (TCO 9) The Chambers 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 variable cost per machine hour using the high-low method to estimate the cost equation?
$2.78
$2.86
$3.10
$3.38


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 sales volume variance for the two products?
$6,990 Favorable
$8,200 Favorable
$6,990 Unfavorable
$8,200 Unfavorable


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 at $3.50 per piece). What is the total material variance?
$7,500 Favorable
$15,000 Favorable
$7,500 Unfavorable
$15,000 Unfavorable