Chapter 1, Problem 1Q

1. Data Trust Incorporated, manufactures Poke Monster figures and has the following data from its operation for the year just completed.   Actual A Flexible Budget B Master Budget Units 1,540       1,240 Sales (dollars) $ 101,000   C $ 20,400 F   Variable cost E       $ 64,480 Contribution Margin   $ 1,400 U D     Fixed cost F   $ 5,080     Operating income $ 15,200         The sales volume variance in terms of operating income is:   2. Distill Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $45,600 favorable; direct labor efficiency variance = $76,000 unfavorable. Distill allows 4 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standard allowed for the output achieved. What was the direct labor…

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