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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $145 for each connector and fixed costs of $7,500 per month. MajorNet’s static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 84 connectors at a total cost of $21,000.
1. MajorNet’s total flexible budget cost for 84 connectors per month is
a. $14,500.
b. $12,180.
c. $19,680.
d. $21,000.
2. MajorNet’s sales volume variance for total costs is
a. $1,320 U.
b. $1,320 F.
c. $2,320 U.
d. $2,320 F.
3. MajorNet’s flexible budget variance for total costs is
a. $1,320 U.
b. $1,320 F.
c. $2,320 U.
d. $2,320 F.
4. MajorNet Systems’ managers could set direct labor standards based on
a. time-and-motion studies.
b. continuous improvement.
c. benchmarking.
d. past actual performance.
e. Items a, b, c, and d are all correct
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