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Question: 1. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. If the company actually produces 10,000 units, what are the flexible budget amounts of fixed and variable costs?
2. Ten Pro reports the following on one of its products. Compute the direct materials price and quantity variances.
Direct materials standard (4 lbs. @ $2/lb.) . . . . . . . . $8 per finished unit
Actual direct materials used . . . . . . . . . . . . . . . . . . . . 150,000 lbs.
Actual finished units produced . . . . . . . . . . . . . . . . . . 30,000 units
Actual cost of direct materials used . . . . . . . . . . . . . . $267,500
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Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets:
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