1. Given the following performance report, determine the total amount of variance and if it is favorable or unfavorable. Actual costs: Maintenance is $50,000; Power is $80,000; and Indirect Labor is $10,000. Budgeted costs: Maintenance is $45,000; Power is 81,000; and Indirect Labor is $8,000.

a.

6,000 U

b.

6,000 F

c.

12,000 U

d.12,000F

2. We prepare a budget based on manufacturing 20,000 chairs this month. Budgeted costs are: Fixed manufacturing costs = $50,000 per month; Variable manufacturing costs = $10 per chair. However; we actually produced 21,000 chairs during March. How much is the flexible budget for March?

a.

$260,000

b.

$50,000

c.

$250,000

d.

$200,000

3. Please determine the total amount of Direct Labor in our Budget for January and February together given the following information: Direct labor per unit = .25 hours; Direct labor rate is $30 per hour; Expected number of units to produce in January is 20,000 units and in February is 15,000 units.

a. $200,000

b. $235,000

c. $262,500

d. $285,000