Cost 11 - The Redrock Company uses flexible budgeting for...

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The Redrock Company uses flexible budgeting for cost control. Redrock produced 10,800 units of product during October, incurring indirect material costs of $13,000. Its master budget for the reflected indirect material costs of $180,000 at a production volume of 144,000 units. What was the flexible budget variance for the indirect material costs in October? Answer Selected Answer: $500 favorable Correct Answer: $500 favorable Response Feedback: ($180,000/144,000) 10,800 = $13,500; $13,500 - 13,000 = $500 favorable Question 2 2 out of 2 points Units Sales Revenue Less: Variable mfg Costs Variable mktg/adm costs Contribution margin Based on the information above what is the activity variance for the variable manufacturing costs? Answer Selected Answer: $14,000 Correct Answer: $14,000 Response Feedback: Question 3 2 out of 2 points
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Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. Standard Standard Standard Quantity Price Cost Direct materials 8 pounds $1.80 per pound $14.40 Direct labor .25 hour $8.00 per hour $2.00 During November, Arrow purchased
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Cost 11 - The Redrock Company uses flexible budgeting for...

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