11.Armstrong, Inc. uses a flexible budget. Armstrong produced 16,000 units in May incurring direct materials cost...

 

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11.Armstrong, Inc. uses a flexible budget. Armstrong produced 16,000 units in May incurring direct materials cost of $20,480. Its master budget for the year projected direct materials cost of $362,500, at a production volume of 290,000 units. A flexible budget for May should reflect direct materials cost of: A. $20,480. B. $20,000. C. $21,000. D. $19,750. 12. In establishing standard costs for labor, management must look at all of the following except: A. Time allowed to produce each product. B. Direct labor requirements for each product. C. The wage rate of a direct laborer. D. The quantity of materials for each product. 13.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials quantity variance is: A. $2,850 Favorable. B. $1,575 Unfavorable. C. $1,275 Favorable. D. $2,850 Unfavorable. 14.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials price variance is: A. $2,850 Favorable. (95,000 x $0.12) - (95,000 x $0.15) = $2,850 F B. $1,575 Unfavorable. C. $1,275 Favorable. D. $2,850 Unfavorable. %3D 15. There will be a favorable materials price variance if: A. The standard price per unit is less than the actual price per unit. B. The standard price per unit is greater than the actual price per unit. C. The actual quantity purchased is greater than expected. D. The actual quantity purchased is less than expected. 11.Armstrong, Inc. uses a flexible budget. Armstrong produced 16,000 units in May incurring direct materials cost of $20,480. Its master budget for the year projected direct materials cost of $362,500, at a production volume of 290,000 units. A flexible budget for May should reflect direct materials cost of: A. $20,480. B. $20,000. C. $21,000. D. $19,750. 12. In establishing standard costs for labor, management must look at all of the following except: A. Time allowed to produce each product. B. Direct labor requirements for each product. C. The wage rate of a direct laborer. D. The quantity of materials for each product. 13.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials quantity variance is: A. $2,850 Favorable. B. $1,575 Unfavorable. C. $1,275 Favorable. D. $2,850 Unfavorable. 14.If the standard quantity of materials is 84,500 units @ $0.15 per unit and the actual quantity is 95,000 units @ $0.12 per unit, then the materials price variance is: A. $2,850 Favorable. (95,000 x $0.12) - (95,000 x $0.15) = $2,850 F B. $1,575 Unfavorable. C. $1,275 Favorable. D. $2,850 Unfavorable. %3D 15. There will be a favorable materials price variance if: A. The standard price per unit is less than the actual price per unit. B. The standard price per unit is greater than the actual price per unit. C. The actual quantity purchased is greater than expected. D. The actual quantity purchased is less than expected.

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Solution 11 Flexible Budget For Direct Material Particulars Standard cost for Direct Material 362... View the full answer