Question

please answer 10) 11) 12) 13) thanks!

e. W pont 10. Brees Inc., a company that produces and sells a single product, has provided its contribution format income statement for April. Sales (6,200 units).......... Variable expenses .......... Contribution margin........ Fixed expenses Net operating income...... 80.600 55,800 48.700 $ 7.100 If the company sells 5,800 units, its total contribution margin dollars should be closest to: a. $50,400 b. $52,200 c. $56,642 d. $47,000 e. $45,558 11. An unfavorable materials quantity variance indicates a. actual usage of material exceeds the standard material used for production. b. standard material expected usage exceeds the actual usage of material. c. actual material price exceeds standard price. d. standard material price exceeds actual price. e. total material costs will be unfavorable 12. Which of the following would most likely produce a materials price variance? a. An excess of quantity materials used b. An excess of number of direct labor hours worked in completing a job c. Unexpectedly shipping raw materials by overnight air freight rather than 7-day ship via truck d. Breakage of materials in production e. Receiving sub-standard materials from supplier 13. Which of the following would be more likely produce a labor rate variance? a. Using poor quality materials b. Use of persons with high wage rates in tasks that normally call for minimum wage employees c. Excessive number of hours worked in completing a job d. An unfavorable overhead cost variance e. Annual bonuses paid to production supervisors

Answer 1

Question 10 Option (B) is Correct Contribution Margin per unit = 55800/6200 units Contribution margin for 5800 units = 5800*$9 $ 52,200 Question 11 Option (A) is correct. AN unfavourable material quantity variance indicates that Actual usage of material exceeds the standard material used for production Material quantity variance = (SQ-AQ)*SP Question 12 Option (C.) is correct. Unexpectedly shipping raw materials by overnight air freight rather than 7 day ship via truck. It affects the cost higher, higher cost leads to price variance Question 13 Option (B) is correct. Use of persons with high hourly wage rates in tasks that call for minimum wage employees. Higher labour costs results in labour rate variance.