Answer the following questions using the information below: As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter. $\begin{array}{lrlr} &\text { Actual } & \text { Flexible } & \text { Static } \\ &\text { Results } & \text { Budget } & \text { Budget }\\ \text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\ & & & \\ \text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\ \text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\ \text { Contribution margin } & 103500 & \$ & 70000 \\ & & & \\ \text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\ \text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500 \end{array}$ -The flexible budget will report ________ for variable costs.

A) $175 000 B) $195 000 C) $13 583 D) $154 000 A) $175 000 B) $195 000 C) $13 583 D) $154 000

Answer the following questions using the information below: The Broken Hill Dustbusters Corporation manufactures two types of vacuum cleaners,the Terminator for commercial building use and the Dustmaid for residences.Budgeted and actual operating data for the year 2018 were as follows: \[\begin{array} { l r r r } \text { Static Budget } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \text { Number sold } & 5000 & 20000 & 25000 \\ \text { Contribution margin } & \$ 1500000 & \$ 3000000 & \$ 4500000 \\ & & & \\ \text { Actual Results } & \text { Terminator } & \text { Dustmaid } & \text { Total } \\ \hline \text { Number sold } & 4000 & 28000 & 32000 \\ \text { Contribution margin } & \$ 1280000 & \$ 3920000 & \$ 5200000 \end{array}\] Prior to the beginning of the year,a consulting firm estimated the total volume for vacuum cleaners of the Terminator and Dustmaid category to be 250 000 units,but actual industry volume was 256 000 units. -What is the total sales-mix variance in terms of the contribution margin?

A) $1 260 000 favourable B) $360 000 unfavourable C) $900 000 favourable D) $200 000 unfavourable A) $1 260 000 favourable B) $360 000 unfavourable C) $900 000 favourable D) $200 000 unfavourable

Answer the following questions using the information below: As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter. $\begin{array}{lrlr} &\text { Actual } & \text { Flexible } & \text { Static } \\ &\text { Results } & \text { Budget } & \text { Budget }\\ \text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\ & & & \\ \text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\ \text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\ \text { Contribution margin } & 103500 & \$ & 70000 \\ & & & \\ \text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\ \text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500 \end{array}$ -The variance that is BEST for measuring operating performance is the:

A) flexible-budget variance. B) sales-volume variance. C) selling-price variance. D) static-budget variance. A) flexible-budget variance. B) sales-volume variance. C) selling-price variance. D) static-budget variance.

Answer the following questions using the information below: Bundaberg Bicycles has prepared the following flexible budget for September and is in the process of interpreting the variances.F denotes a favourable variance and U denotes an unfavourable variance. \[\begin{array} { l r r r } & \text { Flexible } & { \text { Variances } } \\ & \underline { \text { Budget } } & \underline {\text { Price }} & \underline { \text { Efficiency }} \\ \text { Material A } & \$ 20000 & \$ 1000 \mathrm { U } & \$ 1200 \mathrm {~F} \\ \text { Material B } & 30000 & 500 \mathrm {~F} & 800 \mathrm { U } \\ \text { Material C } & 40000 & 1400 \mathrm { U } & 1000 \mathrm {~F} \end{array}\] -The actual amount spent for Material B was:

A) $29 700. B) $30 500. C) $30 800. D) $30 300. A) $29 700. B) $30 500. C) $30 800. D) $30 300.

Answer the following questions using the information below: Cootamundra Industries (CI),developed standard costs for direct material and direct labour.In 2018,CI estimated the following standard costs for one of their major products,the 30-litre heavy-duty plastic container. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 0.20 \mathrm {~kg} & \$ 26 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.10 \text { hours } & \$ 14 \text { per hour } \end{array}\] During July,CI produced and sold 10 000 containers using 2200 kg of direct materials at an average cost per kg of $24 and 1050 direct manufacturing labour hours at an average wage of $14.75 per hour. -July's direct material flexible-budget variance is:

A) $800 unfavourable. B) $5000 unfavourable. C) $4400 favourable. D) None of these answers are correct. A) $800 unfavourable. B) $5000 unfavourable. C) $4400 favourable. D) None of these answers are correct.

Answer the following questions using the information below: As part of the budgeting process,Lillee's Petanque Company developed the following static budget for August.Lillee is in the process of preparing the flexible budget and understanding the results.The actual results are for the month of August. $\begin{array}{lrlr} &\text { Actual } & \text { Flexible } & \text { Static } \\ &\text { Results } & \text { Budget } & \text { Budget }\\ \text { Sales volume (in units) } & 20000 &\underline{\quad\quad} & 25000 \\ & & & \\ \text { Sales revenues } & \$ 1000000 & \$ & \$ 1250000 \\ \text { Variable costs } & \underline{512000} & \$ \underline{\quad\quad}& \underline{600000} \\ & & & \\ \text { Contribution margin } & 488000 & \$ & 650000 \\ & & &\\ \text { Fixed costs } & 458000 & \$ \underline{\quad\quad}& 450000 \\ \text { Operating profit } & \$ 30000 & \$ \underline{\quad\quad}& \$ 200000 \end{array}$ -The flexible budget will report ________ for the fixed costs.

A) $360 000 B) $450 000 C) $458 000 D) $572 500 A) $360 000 B) $450 000 C) $458 000 D) $572 500

Answer the following questions using the information below: Robert Jones Industries (RJ),developed standard costs for direct material and direct labour.In 2018,RJ estimated the following standard costs for one of their major products,the 10-litre wine barrel. \[\begin{array} { l l l } & \text { Budgeted quantity } & \text { Budgeted price } \\ \text { Direct materials } & 0.10 \mathrm {~kg} & \$ 30 \text { per } \mathrm { kg } \\ \text { Direct labour } & 0.05 \text { hours } & \$ 15 \text { per hour } \end{array}\] During June,RJ produced and sold 5000 containers using 490 kg of direct materials at an average cost per kg of $32 and 250 direct manufacturing labour-hours at an average wage of $15.25 per hour. -June's direct manufacturing labour efficiency variance is:

A) $3811.75 unfavourable. B) $62.50 unfavourable. C) $62.50 favourable. D) None of these answers are correct. A) $3811.75 unfavourable. B) $62.50 unfavourable. C) $62.50 favourable. D) None of these answers are correct.