Main Street Merchandising anticipated selling 24,000 units of a major product and paying
sales commissions of $5 per unit.
Actual sales and sales commissions totaled 23,600 units and
If the company used a flexible budget for performance evaluations,
Main Street would report a cost variance of:
some other amount not listed above.
Badger Bakeries anticipated making 17,000 fancy cakes during a recent period, requiring
14,000 hours of process time.
Each hour of process time was expected to cost the firm $11.
Actual activity for the period was higher than anticipated: 18,000 cakes and 15,200 hours.
each hour of process time actually cost Badger $12, what process-time variance would be
disclosed on a performance report that incorporated static budgets and flexible budgets?
None of the above
Lantern Corporation recently prepared a manufacturing cost budget for an output of 50,000
units, as follows:
Actual units produced amounted to 60,000.
Actual costs incurred were: direct materials,
$110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000.
Lantern evaluated performance by the use of a flexible budget, a performance report would