1.
Use the following data to find the direct labor rate variance.
Direct labor standard (4.5 hrs.@ $ 6/hr.) $27 per finished unit
Actual hours worked per unit 4.0 hours
Actual units produced 4,800 units
Actual rate per hour 6.25 per hour
$4,800
favorable.
$19,200 unfavorable.
$19,200 favorable.
$4,800 unfavorable.
$19,200 favorable.
2. Under absorption costing, a company had the following unit costs when 14,500 units were produced.
Direct labor $ 11.75 per unit
Direct material $ 12.25 per unit
Variable overhead $ 10.00 per unit
Fixed overhead ($203,000 / 14,500 units) $ 14.00 per unit
Total production cost $ 48.00 per unit
Compute the total production cost per unit under variable costing if 67,600 units had been produced.
$37.00
$48.00
$24.00
$36.00
$34.00
3. Marsden manufactures a cat food product called Special Export. Marsden currently has 5,000 bags of Special Export on hand. The variable
production costs per bag are $1.9 and total fixed costs are $5,000. The cat food can be sold as it is for $9.1 per bag or be processed further
into Prime Cat Food and Feline Surprise at an additional $2,100 cost. The additional processing will yield 5,000 bags of Prime Cat Food and
3,150 bags of Feline Surprise, which can be sold for $8.1 and $6.1 per bag, respectively.
The net advantage (incremental income) of processing Special Export further into Prime and Feline Surprise would be:
$2,100
$12,115
$59,715
$57,615
$14,215
4. A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of
the company's three activity cost pools are shown in the following table:
Budgeted Activity
Activity Cost Pool Budgeted Cost Product A Product B Product C
Activity 1 $320,250 12,500 15,500 33,000
Activity 2 $266,000 13,500 28,000 14,500
Activity 3 $173,250 3,800 2,300 2,900
How much overhead will be assigned to Product B using activity-based costing?
$258,650
$297,950
$202,900
$759,500
$320,250
5. Juliet Corporation has accumulated the following accounting data for the year:
Finished goods inventory, January 1 $ 7,600
Finished goods inventory, December 31 8,950
Total cost of goods sold 9,700
The cost of goods manufactured for the year is:
$750
$2,100
$11,050
$15,200
$18,650
6. Assume a company sells a given product for $12 per unit. How many units must be sold to break even if variable selling costs are $0.50 per unit, variable production costs are $3.50 per unit, and total fixed costs are $4,500,000?
391,305 units.
562,500 units.
529,412 units.
281,250 units.
375,000 units.