Solution-Compute the total costs expected

Compute the total costs expected

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Reference no: EM132178820

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Q1. ABC Company develops a flexible budget. Based on 10,000 units sold, variable costs are projected to be $450,000 and fixed costs are projected to be $300,000. Compute the total costs expected if 12,000 units are sold.

a. $540,000

b. $750,000

c. $810,000

d. $840,000

e. $900,000

Q2. Calculate the missing Year 3 cash flow based on the following information. The payback period is 3.5 years. The net investment is $550,000 at the beginning of the investment. Cash flows are $200,000 for Year 1, $100,000 for Year 2, $100,000 for Year 4 and $50,000 for Year 5.

a. $50,000

b. $100,000

c. $150,000

d. $200,000

e. $250,000

Q3. Each month Acme Company produces 20,000 bottles of a juice drink. Each bottle is expected to contain 12 ounces of juice at an expected cost of $1.10 per ounce (standard rate). During the month 250,000 ounces were produced at a materials cost of $225,000. What is the materials quantity variance?

a. $11,000 unfavorable

b. $40,000 unfavorable

c. $25,000 favorable

d. $39,000 favorable

e. $50,000 favorable

Reference no: EM132178820

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Compute the total costs expected

Reference no: EM132178820

Reference no: EM132178820

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