1. Grayson Industries has collected the following data for one of its products:

Direct materials standard (4 pounds per unit @ $0.50/lb.)	$2 per finished good
Direct materials flexible budget variance-unfavorable	$10,000
Actual direct materials used	40,000 pounds
Actual finished goods produced	24,000 units

How much is the direct materials price variance?

Select one:

a. $38,000 favorable

b. $38,000 unfavorable

c. $4,000 favorable

d. $4,000 unfavorable

2. Rockwell Corporation manufactures and sells computer keyboards. The keyboard sells for $55 per unit and its variable costs per unit are $42. Fixed costs are $80,000 per month for sales volumes up to 40,000 keyboards. If more than 40,000 keyboards are sold, the fixed costs will be $110,000. The flexible budget would reflect what monthly operating income for a sales volume of 52,000 keyboards?

Select one:

a. $566,000

b. $676,000

c. $596,000

d. $2,860,000