1. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct materials 2,500 kilograms @ $8 Actual C

1. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:

Standard Costs

Direct materials 2,500 kilograms @ $8

Actual Costs

Direct materials 2,600 kilograms @ $8.75

The amount of the direct materials quantity variance is:

2. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:

Standard Costs

Direct materials (per completed unit) 1.04 kilograms @$8.75

Actual Costs

Direct materials 2,500 kilograms @ $8

The amount of direct materials price variance is:

3. McCabe Manufacturing Co.’s static budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 9,000 units of production, a flexible budget would show:

4.O’Neill Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. O’Neill expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are:

5. If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point in units if variable costs are decreased by $.50 a unit?

6. If fixed costs are $300,000 and the unit contribution margin is $5, what amount of units must be sold in order to realize an operating income of $50,000?

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