You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March.

Required:

1. Prepare a flexible budget for March.

Prepare a flexible budget for March. (Input all amounts as positive values.)

2. Prepare a report showing the spending variances for March.

Prepare a report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

alculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Please teach each answer and please explain.

Q1.​Which of the following is true of government purchases?

A)​Government purchases are independent of consumption.

B)​Government purchases are independent of the level of real GDP.

C)​Government purchases are independent of the amount saved by households.

D)​Government purchases are independent of investment.

Q2. ​If an economy’s actual GDP exceeds its potential GDP, _____.

A) ​self-correcting forces will shift the SRAS curve to the left

B)​ wages and prices must fall

C) unemployment is likely to be unusually high

D) ​inflation will occur when AD shifts to the left

Q3. ​Passive policy advocates rely on the economy’s natural ability to correct itself in case of unemployment because of:

​A) the belief that active economic policy is likely to be either ineffective or harmful.  

B)​ the conviction that unemployment is relatively harmless.

C) the belief in the law of diminishing returns.

D) ​the desire to await further economic data before intervening.

Q4. ​Which of the following is generally true of nominal wages?

A) ​Nominal wages do not rise during labor shortages.

​B) Nominal wages are more flexible than prices.

C) ​Nominal wages tend to adjust slowly in the downward direction.

​D) Nominal wages are more flexible downward than upward.

Q5. Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending?

A) Transfer payments affect disposable income, but taxes do not.

​B) Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption.

C) ​Transfer payments and taxes affect aggregate spending directly, just as consumption does.

D) ​Changes in the amount of transfer payments and taxes cancel each other and therefore have no influence on any economic variable.

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $20,600 plus $0.10 per machine-hour $ 24,200 Maintenance $40,000 plus $1.60 per machine-hour $ 78,100 Supplies $0.30 per machine-hour $ 8,400 Indirect labor $130,000 plus $0.70 per machine-hour $ 149,600 Depreciation $70,000 $ 71,500 During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March.

Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 17,000 machine-hours and produced 11,000 units. The company had originally planned to work 19,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Use the following information for the next 7 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 2% and that the real economic growth rate is 4%. Now assume that there is a negative real shock. After the negative real shock, the inflation rate in the economy is 9%. Now assume that the federal government decides to increase government spending in order to combat the situation resulting from the rise in oil prices. After the increase in government spending, the growth rate of the velocity of money is 8%.

What is the inflation rate at the initial long-run equilibrium (the point where we start)?

The negative real shock causes the _______ curve to shift _______.

After the negative real shock (Point 2), what is the level of expected inflation for the SRAS curve?

After the negative real shock (Point 2), what is the the real economic growth rate?

When the federal government decides to increase government spending, the ______ curve shifts ______.

After the federal government increases government spending (Point 3), what is the growth rate of the money supply?

After the federal government increases government spending (Point 3), what is the inflation rate in your graph?

If the expenditure multiplier is 2.5 and the government spending increases by $4 billion, what would be the increase in the real GDP?

Select one: a. $8 billion b. $6.5 billion c. $1.6 billion d. $10 billion

Say’s Law states that supply creates its own demand. In the neoclassical zone on the graph above, supply is at its potential GDP, at full capacity. When aggregate supplies have reached their full potential output, what happens if demand shifts to the right?

Select one:

a. The aggregate demand prices decrease as AD shifts to the right.

b. The aggregate demand prices increase as AD shifts to the right.

c. The aggregate supply outputs increase and LRAS shifts to the right.

d. The GDP deflator shifts up and to the left.

Aggregate demand is more likely than aggregate supply to ________ in the short run.

Select one:

a. shift substantially

b. remain at zero

c. remain unchanged

d. increase slightly

During recessionary times it can be hard to coordinate lower wages for workers because of the ________.

Select one:

a. relative wage theory

b. shoe leather costs

c. discoordination argument

d. coordination argument

Expansionary fiscal policy might include which of the following?

Select one:

a. Increase in taxes or increased government spending.

b. Reduction of taxes or increased government spending.

c. Reduction in taxes or lowered government spending.

d. Increase in taxes or decreased government spending.