The Managerial Accountant Prepared the Following Level-1 Analysis for the Halcyon

question 59

Multiple Choice

The managerial accountant prepared the following Level-1 analysis for The Halcyon Carpet renewal system company:

Required
Compute the static-budget variances of (a) units sold; (b) revenues; (c) direct materials; (d) direct manufacturing labor; (e) variable manufacturing overhead; (f) total variable costs; (g) contribution margin; (h) fixed costs; (i) operating income.

• A)(a)15,000, (b)$75,000,U, (c)$85,600, (d)$8,000,U, (e)$17,500, (f)$95,100,F, (g)$89,000, (h)$13,000,U, (i)$102,000,U.
• B)(a)17,000, (b)$80,000,F, (c)$92,300, (d)$6,000,U, (e)$12,600, (f)$98,100,U, (g)$93,000, (h)$15,000,F, (i)$112,000,F.
• C)(a)13,000, (b)$85,000,F, (c)$95,000, (d)$4,000,F, (e)$14,300, (f)$103,000,F, (g)$95,000, (h)$108,000,U, (i)$135,000,U
• D)(a)16,000 (b)$85,000,F, (c)$64,200, (d)$18,000,U, (e)$7,000, (f)$113,000,F, (g)$75,000, (h)$78,000,U, (i)$103,000,F.
• E)(a)9,000, (b)$54,000,F, (c)$68,000, (d)$12,000,U, (e)$23,000, (f)$110,500,U, (g)$63,000, (h)$92,000,F, (i)$100,000,U.

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Definitions:

Present Value Factors

Multipliers used to determine the present value of future cash flows by accounting for the time value of money.

Future Value Factors

Numerical factors used to calculate the future value of an investment after accounting for interest rates and time periods.

Reciprocals

Mathematical expressions that represent the inverse of a given number or quantity, such that the product of a number and its reciprocal equals one.

Present Value

The present calculation of a future monetary amount or series of cash inflows, using a particular return rate.