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