A company's plannedactivity level for next year is expected to be 200,000 machinehours. At this level of activity, the company budgeted thefollowing manufacturing overhead costs:
Variable Fixed
Indirect materials$280,000 Depreciation $120,000
Indirect labor 400,000Taxes 20,000
Factory supplies 40,000Supervision 100,000
A flexible budget preparedat the 160,000 machine hours level of activity would show totalmanufacturing overhead costs of
a. $576,000.
b. $720,000.
c. $768,000.
d. $816,000.
A company developed thefollowing per-unit standards for its product: 2 pounds of directmaterials at $4 per pound. Last month, 1,500 pounds of directmaterials were purchased for $5,700. The direct materials pricevariance for last month was
a. $5,700favorable.
b. $300favorable.
c. $150favorable.
d. $300unfavorable.
A company budgeted unitsales of 204,000 units for January, 2013 and 240,000 units forFebruary, 2013. The company has a policy of having an inventory ofunits on hand at the end of each month equal to 30% of next month'sbudgeted unit sales. If there were 61,200 units of inventory onhand on December 31, 2013, how many units should be produced inJanuary, 2013 in order for the company to meet itsgoals?
a. 214,800 units
b. 204,000 units
c. 193,200 units
d. 276,000 units
In the month of June, adepartment had 20,000 units in beginning work in process that were70% complete. During June, 80,000 units were transferred intoproduction from another department. At the end of June there were10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, whileconversion costs are incurred uniformly throughout the process. Theequivalent units of production for materials for Junewere
a. 90,000 equivalentunits.
b. 100,000 equivalentunits.
c. 104,000 equivalentunits.
d. 80,000 equivalentunits.
Mah, Inc. completed JobNo. B14 during 2013. The job cost sheet listed thefollowing:
Direct materials$55,000
Direct labor$30,000
Manufacturing overheadapplied $20,000
Units produced 3,000units
Units sold 1,800units
How much is the cost ofthe finished goods on hand from this job?
a. $105,000
b. $63,000
c. $42,000
d. $51,000
WORK NEEDS TO BE SHOWN!!!
A company's plannedactivity level for next year is expected to be 200,000 machinehours. At this level of activity, the company budgeted thefollowing manufacturing overhead costs:
Variable Fixed
Indirect materials$280,000 Depreciation $120,000
Indirect labor 400,000Taxes 20,000
Factory supplies 40,000Supervision 100,000
A flexible budget preparedat the 160,000 machine hours level of activity would show totalmanufacturing overhead costs of
a. $576,000.
b. $720,000.
c. $768,000.
d. $816,000.
A company developed thefollowing per-unit standards for its product: 2 pounds of directmaterials at $4 per pound. Last month, 1,500 pounds of directmaterials were purchased for $5,700. The direct materials pricevariance for last month was
a. $5,700favorable.
b. $300favorable.
c. $150favorable.
d. $300unfavorable.
A company budgeted unitsales of 204,000 units for January, 2013 and 240,000 units forFebruary, 2013. The company has a policy of having an inventory ofunits on hand at the end of each month equal to 30% of next month'sbudgeted unit sales. If there were 61,200 units of inventory onhand on December 31, 2013, how many units should be produced inJanuary, 2013 in order for the company to meet itsgoals?
a. 214,800 units
b. 204,000 units
c. 193,200 units
d. 276,000 units
In the month of June, adepartment had 20,000 units in beginning work in process that were70% complete. During June, 80,000 units were transferred intoproduction from another department. At the end of June there were10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, whileconversion costs are incurred uniformly throughout the process. Theequivalent units of production for materials for Junewere
a. 90,000 equivalentunits.
b. 100,000 equivalentunits.
c. 104,000 equivalentunits.
d. 80,000 equivalentunits.
Mah, Inc. completed JobNo. B14 during 2013. The job cost sheet listed thefollowing:
Direct materials$55,000
Direct labor$30,000
Manufacturing overheadapplied $20,000
Units produced 3,000units
Units sold 1,800units
How much is the cost ofthe finished goods on hand from this job?
a. $105,000
b. $63,000
c. $42,000
d. $51,000
WORK NEEDS TO BE SHOWN!!!
Unlock all answers
Related questions
Pardoe, Inc., manufactures a single product in which variablemanufacturing overhead is assigned on the basis of standard directlabor-hours. The company uses a standard cost system and hasestablished the following standards for one unit of product:
| StandardQuantity | Standard Price orRate | Standard Cost | |
| Direct materials | 2.5 pounds | $6.50 per pound | $16.25 |
| Directlabor | 0.6 hours | $20 per hour | $12.0 |
| Variable manufacturing overhead | 0.6 hours | $4.75 per hour | $2.85 |
| During March, thefollowing activity was recorded by the company: |
| ⢠The companyproduced 5,800 units during the month. |
| ⢠A total of 18,500 pounds of material were purchased at a costof $51,800. |
| ⢠There was no beginning inventory of materials on hand to startthe month; at the end of the month, 3,700 pounds of material remained in thewarehouse. |
| ⢠During March, 3,680 direct labor-hours were worked at a rateof $20.50 per hour. |
| ⢠Variablemanufacturing overhead costs during March totaled $10,688. |
| The direct materialspurchases variance is computed when the materials arepurchased. |
| The materials pricevariance for March is: |
$68,450 U
$29,300 F
$29,300 U
$68,450 F
(TCO 6) Hyde Inc. is comparing several alternative capitalbudgeting projects as shown below.
Projects | A | B | C |
Initial Investment | $110,000 | $90,000 | $50,000 |
Present value of cash inflows | $100,000 | $100,000 | $60,000 |
Using the profitability index, rank the projects, starting with themost attractive. (Points : 5) A, C, B
A, B, C
C, A, B
C, B, A
$1,387 $65,375 $5,161 |
Budgeted raw materials Beginning finished goodsunits Ending finished goodsunits |
102,000 units 96,600 units 138,000 units |
Planning variance Economic variance Material variance |
direct materials costs fixed overhead costs None of the above |
increase by more than10% decrease by less than10% increase 10% |
$36,000 $14,000 $50,000 |
Budget reports are used forplanning, control, and information. Reports prepared for uppermanagement typically have fewer details than reports prepared forlower level managers. Reports are prepared morefrequently for upper management than for lower level managers. |
