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Question
DT Co. produces picture frames. It takes 3 hours of direct labor to produce a frame. DT's standard labor cost is $11 per hour. During March, DT produced 4,000 frames and used 12,400 hours at a total cost of $133,920.
a. What is DT's labor rate variance for March?
b. What is DTs direct labor efficiency variance for March?
c. Record the labor costs and the variances for DT.
Answer
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Related questions
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The _______________________________ is computed by discounting the future net cash flows from the investment at the project's required rate of return and then subtracting the initial amount invested.
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The _______________________________ is computed by dividing a project's after-tax net income by the average amount invested in it.
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C. It does not matter because both alternatives have the same result.
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E. Throw the units away.
Q:
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Q:
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Q:
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Q:
An additional cost that is incurred only if a particular action is taken is a(n):
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Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
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C. $25,750
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Q:
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B. $(251.52) and Scott would be willing to pay $29,748.48 for the machine.
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Q:
A disadvantage of using the payback period to compare investment alternatives is that:
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B. It includes the time value of money.
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D. It cannot be used if a company records depreciation.
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Q:
A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1
Year 2
Year 3
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.8264
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Q:
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Q:
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B. To discount all future and past cash flows.
C. To earn a satisfactory return on investment.
D. To reverse past decisions.
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Are relevant costs useful to management in determining long-run pricing decisions?
Q:
What is the difference between an opportunity cost and a sunk cost?
Q:
Rocko Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and Rocko can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?
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Q:
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Dept. R
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$7,000
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5,500
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B. $500 decrease
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Q:
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42
25 A. 15,000 croquet sets.
B. 12,000 volleyball games.
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Q:
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76 A. Both product A and product B should be processed further.
B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
D. Only product A should be processed further.
E. A processing further decision cannot be made from the available data.
Q:
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A. Income will decrease by $7 per unit.
B. Income will increase by $7 per unit.
C. Income will increase by $12 per unit.
D. Income will decrease by $12 per unit.
E. Income will increase by $10 per unit.
Q:
A company expects to produce and sell 7,000 units of a single product. The following additional company information is available: Variable costs (per unit) Production costs
$20 Nonproduction costs
$3 Fixed costs (in total) Overhead
$175,000 Nonproduction
$14,000 Compute this companys total cost per unit.
A. $23
B. $45
C. $27
D. $50
E. $5
Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.