acounting exam 2 math problems
Assume that a company provided the following excerpts of information from its flexible budget performance report: Actual ResultsFlexible BudgetPlanning BudgetFlights (q)55?50Revenue ($200.00q)$ 11,550$ ?$ ? What is the amount of the revenue activity variance?
$1,000 F
Assume the following: The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,000 hours. The total actual variable manufacturing overhead cost for the period was $63,000. The company produced 15,000 units of finished goods during the period. What is the variable overhead efficiency variance?
$1,500 F
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)$ 3,000Supplies (variable)$ 4.00qUtilities (mixed)$150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget?
$1,650
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct materials price variance?
$10,000 F
Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the company's unit product cost?
$165
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the cost of the company's ending inventory?
$165,000
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased. The materials price variance was $10,000 F. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the actual price per pound of materials?
$10.50
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed selling and administrative expense $ 110,000Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the net operating income for the second year of operations?
$100,000
Assume a merchandising company provides the following information from its master budget for the month of May: Sales$ 220,000Cost of goods sold$ 80,000Cash paid for merchandise purchases$ 75,000Selling and administrative expenses$ 35,000Cash paid for selling and administrative expenses$ 28,000 What is the budgeted net operating income?
$105,000
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)$ 3,000Supplies (variable)$ 4.00qUtilities (mixed)$150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. If these are the company's only three expenses and the company uses revenue formula of $8.00q for budgeting purposes, what net operating income would appear in the company's flexible budget?
$11,000
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company produced 13,000 units of finished goods during the period. What is the materials price variance?
$12,500 U
Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's unit product cost?
$135
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost PoolActivity RateTravel$ 2per mile drivenDeliveries$ 50per deliveryCustomer service$ 22per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected ActivityCustomer ACustomer BTravel (number of miles driven)300250Deliveries (number of deliveries)155Customer service (number of phone calls)2012 If the company earned $1,150 in revenue serving Customer B, then what is the customer margin for this customer?
$136
In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product AProduct BTotalDirect materials$ 436,300$ 251,700$ 688,000Direct labor$ 200,000$ 104,000304,000Manufacturing overhead 608,000Cost of goods sold $ 1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Cost Pool (and Activity Measure)Manufacturing OverheadActivityProduct AProduct BTotalMachining (machine-hours)$ 213,50090,00062,500152,500Setups (setup hours)157,50075300375Product design (number of products)120,000112Other (organization-sustaining costs)117,000NANANATotal manufacturing overhead cost$ 608,000 The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature.If the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total gross margin (or product margin) earned by Product B?
$136,300
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials$ 65,560 Direct materials price variance$ 5,960UStandard quantity of materials allowed per unit3poundsStandard price per pound of material$ 4.00 Standard rate per direct labor hour$ 5.00 Actual total direct labor hours6,500 Direct labor efficiency variance$ 3,500FStandard number of direct labor hours allowed per unit2hoursActual number of units of finished goods produced3,600 What is the direct materials quantity variance?
$16,400 U
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the unit product cost for units produced during the second year of operations?
$172.50
Assume a company with two divisions (A and B) prepared the following segmented income statement: ABTotalSales$ ?$ 200,000$ ?Variable expenses120,000140,000260,000Contribution margin???Traceable fixed expenses100,00080,000180,000Segment margin$ ?$ (20,000)?Common fixed expenses 50,000Net operating income $ 10,000 What is Division A's contribution margin?
$180,000
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The materials price variance is $12,500 U. The company produced 13,000 units of finished goods during the period. The actual price per pound of direct materials is closest to:
$2.25.
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's net operating income?
$213,000
Assume the following: The standard labor rate per hour is $17.00. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,000 hours. The total actual direct labor cost for the period was $726,000. The company produced 15,000 units of finished goods during the period. What is the labor rate variance?
$22,000 F
Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. These costs were consumed by four activities as follows: TravelDeliveriesCustomer ServiceOtherTotalVehicle operating expenses45%40%10%5%100%Vehicle depreciation40%50%0%10%100%Customer service salaries20%30%35%15%100% How much total cost (including all three expenses) would be allocated to the Travel activity?
$227,000
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections of credit sales are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is always 65% of sales. Each month's ending inventory equals 20% of next month's cost of goods sold. 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. Monthly depreciation expense is $20,000. The expected cash collections from customers in December are:
$227,500.
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per UnitPer YearSelling price$ 200Direct materials$ 75Direct labor$ 50Variable manufacturing overhead$ 10Sales commission$ 8Fixed manufacturing overhead$ 300,000 Using absorption costing, what is the company's net operating income? Multiple Choice
$243,000
Assume a company manufactures only two products—14,000 units of Product A and 6,000 units of Product B. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B: Activity Cost PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$ 300,00015,000MHMachine setupsNumber of setups$ 150,000200SetupsProduct designNumber of products$ 78,0002Products Activity MeasureProduct AProduct BMachine-hours9,0006,000Number of setups50150Number of products11 Using the ABC system, how much total overhead cost would be assigned from all of the activities to Product A?
$256,500
Assume a company with two divisions (A and B) prepared the following segmented income statement: ABTotalSales$ 300,000$ 200,000$ 500,000Variable expenses120,000140,000260,000Contribution margin180,00060,000240,000Traceable fixed expenses100,00080,000180,000Segment margin$ 80,000$ (20,000)60,000Common fixed expenses 50,000Net operating income $ 10,000 Division B's dollar sales to break even is closest to:
$266,667.
Assume that a merchandising company provided the following beginning and ending budgeted balance sheets for a forthcoming month: Beginning BalancesEnding BalancesCash$ 30,000$ 38,000Accounts receivable13,00016,000Inventory20,00018,000Buildings and equipment100,000100,000Accumulated depreciation(25,000)(30,000)Total assets$ 138,000$ 142,000Accounts payable$ 4,000$ 5,000Common stock60,00060,000Retained earnings74,00077,000Total liabilities and stockholders' equity$ 138,000$ 142,000 Assuming the company did not pay any dividends during the period, how much net income must be shown on the company's budgeted income statement?
$3,000
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor efficiency variance?
$3,400 U
Assume the following information for a company that produced and sold 10,000 units during Year 1. It also produced 15,000 units and sold 12,000 units during Year 2, while producing 12,000 units and selling 15,000 units in Year 3. Per UnitPer YearSelling price$ 240 Direct materials$ 85 Direct labor$ 60 Variable manufacturing overhead$ 10 Sales commission$ 11 Fixed manufacturing overhead $ 450,000Fixed selling and administrative expense $ 250,000 Using absorption costing, what is the net operating income for Year 3?
$320,000
Assume a company produces and sells only two products—14,000 units of Product A and 6,000 units of Product B. The selling prices are $65 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $30 and $12, respectively. Product B's direct materials and direct labor costs per unit are $34 and $15, respectively. The company uses a plantwide overhead rate based on direct labor dollars. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B: Activity Cost PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$ 300,00015,000MHMachine setupsNumber of setups$ 150,000200SetupsProduct designNumber of products$ 80,0002Products Activity MeasureProduct AProduct BMachine-hours9,0006,000Number of setups50150Number of products11 Using the company's plantwide approach, the total overhead cost allocated to Product A is closest to:
$344,400.
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials$ 65,560 Direct materials price variance$ 5,960UStandard quantity of materials allowed per unit3poundsStandard price per pound of material$ 4.00 Standard rate per direct labor hour$ 5.00 Actual total direct labor hours6,500 Direct labor efficiency variance$ 3,500FStandard number of direct labor hours allowed per unit2hoursDirect labor spending variance$ 400U What is the total actual labor cost?
$36,400
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $250,000, $220,000, and $200,000, respectively. Cash collections related to credit sales are expected to be 75% in the month of sale, 25% in the month following the sale. The cost of goods sold is 65% of sales. Each month's ending inventory equals 20% of next month's cost of goods sold. 40% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. Monthly selling and administrative expenses that are paid in cash in the month incurred total $20,500. Monthly depreciation expense is $20,000. The budgeted net operating income for December would be:
$36,500
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor rate variance?
$4,000 F
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company actually produced 13,000 units of finished goods during the period; however, its planning budget was based on 12,800 units. What is the materials quantity variance?
$4,000 F
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company produced 13,000 units of finished goods during the period. What is the materials quantity variance?
$4,000 F
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct materials spending variance?
$4,500 F
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)$ 3,000Supplies (variable)$ 4.00qUtilities (mixed)$150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?
$400 F
Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: Number of employees14Average annual salary per employee$ 30,000Weeks of employment per year52Hours worked per week40Practical capacity percentage90% Requisition ProcessingBid EvaluationInspectionMinutes per unit of the activity301545 Job AJob BJob CNumber of requisitions processed956Number of bid evaluations434Number of inspections628 What is the total cost of the resources supplied?
$420,000
Assume that a company provided the following information and assumptions from its master budget:Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month.Production budget: The ending finished goods inventory is always 25% of next month's unit sales.Direct labor budget: The direct labor-hours required per unit is 1.50 hours. The direct labor cost per hour is $18.What is the budgeted direct labor cost for July?
$479,250
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Per UnitPer YearSelling price$ 240Direct materials$ 85Direct labor$ 60Variable manufacturing overhead$ 10Sales commission$ 11Fixed manufacturing overhead$ ?Fixed selling and administrative expense$ 250,000 If the company's unit product cost under absorption costing is $203, then what is the amount of fixed manufacturing overhead per year?
$480,000
Assume a merchandising company provides the following information from its master budget for the month of May: Cash collections from customers$ 115,000Cost of goods sold$ 80,000Cash paid for merchandise purchases$ 75,000Selling and administrative expenses$ 35,000Cash paid for selling and administrative expenses$ 28,000Accounts receivable, May 1st$ 15,000Accounts receivable, May 31st$ 20,000 If all of the company's sales are on account, what is the budgeted net operating income for May?
$5,000
In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product AProduct BTotalDirect materials$ 436,300$ 251,700$ 688,000Direct labor$ 200,000$ 104,000304,000Manufacturing overhead 608,000Cost of goods sold $ 1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Cost Pool (and Activity Measure)Manufacturing OverheadActivityProduct AProduct BTotalMachining (machine-hours)$ 213,50090,00062,500152,500Setups (setup hours)157,50075300375Product design (number of products)120,000112Other (organization-sustaining costs)117,000NANANATotal manufacturing overhead cost$ 608,000 The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature. How much of the company's total costs that would be included in its traditional absorption costing income statement should not be assigned to Product A or Product B by the activity-based costing system that the company uses for internal management purposes?
$517,000
Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $140,000; and Customer service salaries, $180,000. These costs were consumed by four activities as follows: TravelDeliveriesCustomer ServiceOtherTotalVehicle operating expenses45%40%10%5%100%Vehicle depreciation40%50%0%10%100%Customer service salaries20%30%35%15%100% How much of the company's total costs should not be allocated to customers when analyzing customer profitability?
$56,000
Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed manufacturing overhead $ 300,000 Using variable costing and based solely on the information provided, what is the company's contribution margin per unit?
$57
Assume a company's activity-based costing system includes three activities with the following activity rates: Activity Cost PoolActivity RateTravel$ 2per mile drivenDeliveries$ 50per deliveryCustomer service$ 22per phone call Two of the company's many customers include Customer A and Customer B. These two customers consumed the company's activities as follows: Total Expected ActivityCustomer ACustomer BTravel (number of miles driven)300250Deliveries (number of deliveries)155Customer service (number of phone calls)2012 How much cost would be assigned from the Travel activity to Customer A?
$600
Assume that a company provided the following excerpts of information from its flexible budget performance report: Actual ResultsFlexible BudgetPlanning BudgetFlights (q)52??Expenses: Wages and salaries ($4,000 + $88.00q)$ 8,510?$ 8,400 What is the spending variance for wages and salaries expense?
$66 F
Assume that a company provided the following information and assumptions from its master budget:Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month.Production budget: The ending finished goods inventory is always 25% of next month's unit sales.Direct materials budget: Each unit of finished goods requires 3 pounds of raw material that cost $2.00 per pound. The ending raw materials inventory is always 30% of next month's production needs. 40% of raw material purchases are paid in the current and the remainder is paid in the following month.What is the budgeted accounts payable balance at the end of June?
$68,310
Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure)Total CostTotal ActivityCustomer deliveries (Number of deliveries)$ 400,0008,000deliveriesManual order processing (Number of manual orders)$ 280,0005,000manual ordersElectronic order processing (Number of electronic orders)$ 150,00015,000electronic ordersLine item picking (Number of line items picked)$ 450,000375,000line itemsOther organization-sustaining costs (None)$ 300,000 The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity MeasureActivityHospital AHospital BNumber of deliveries1025Number of manual orders030Number of electronic orders150Number of line items picked120250 How much total activity cost should be assigned to Hospital A for internal management purposes?
$794
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)$ 3,000Supplies (variable)$ 4.00qUtilities (mixed)$150 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget?
$8,000
Assume the following information for one of a company's variable expenses: The amount of the expense in the planning budget is $9,000. The cost formula is $9.00 per hour. The actual level of activity is 900 hours. The spending variance is $200 unfavorable. The actual amount of the expense must be:
$8,300.
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company produced 13,000 units of finished goods during the period. What is the materials spending variance?
$8,500 U
Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units and then produced 8,000 units and sold 10,000 units during its second year of operations: Per UnitPer YearDirect materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Fixed manufacturing overhead $ 300,000 If the company's absorption costing net operating income during its second year of operations was $20,000, what was its variable costing net operating income or loss during its second year of operations?
$80,000
Assume the following: The actual price per pound is $2.25. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The materials price variance is $12,500 U. The materials quantity variance is $4,000 F. What is the total number of units produced (finished goods) during the period?
13,000 units
Assume the following: The actual labor rate per hour is $16.50. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,000 hours. The labor rate variance is $22,000 F. The labor spending variance is $39,000 F. What is the total number of units produced (finished goods) during the period?
15,000 units
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials$ 65,560 Direct materials price variance$ 5,960UStandard quantity of materials allowed per unit3poundsStandard price per pound of material$ 4.00 Standard rate per direct labor hour$ 5.00 Actual total direct labor hours6,500 Direct labor efficiency variance$ 3,500FStandard number of direct labor hours allowed per unit2hoursDirect labor spending variance$ 400U What is the actual number of units produced during the period?
3,600 units
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials$ 65,560 Direct materials price variance$ 5,960UStandard quantity of materials allowed per unit3poundsStandard price per pound of material$ 4.00 Standard rate per direct labor hour$ 5.00 Actual total direct labor hours6,500 Direct labor efficiency variance$ 3,500FStandard number of direct labor hours allowed per unit2hoursDirect labor spending variance$ 400U What is the standard quantity of labor hours allowed (SH) for the actual level of output?
7,200 hours
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials5pounds$ 11.00per pound$ 55.00Direct labor2hours$ 17.00per hour$ 34.00Variable manufacturing overhead2hours$ 3.00per hour$ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. 8,000 direct labor-hours were recorded at a total cost of $132,000. The direct labor efficiency variance is $3,400 U. What is the standard quantity of labor hours allowed for the actual level of output?
7,800 hours
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per UnitPer YearSelling price$ 200 Direct materials$ 75 Direct labor$ 50 Variable manufacturing overhead$ 10 Sales commission$ 8 Fixed manufacturing overhead $ 300,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?
The absorption costing net operating income will be higher than the variable costing net operating income by $30,000.
