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1. The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the fixed cost using the high-low method to estimate the cost equation?
2. Southern Company's budgeted and actual sales for 2009 were:
Product
Budgeted Sales
Actual Sales
X
20,000 units at $5.00 per unit
17,500 units at $5.30 per unit
Y
35,000 units at $9.00 per unit
37,300 units at $8.80 per unit
What is the sales price variance for the two products?
3. Southern Company manufactures Product X. The standard cost of one unit of output is $12.00 (four pieces at $3.00 per piece). During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces were $3.50 per piece). What is the material price variance?
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