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Question
Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance. What is the actual total direct labor cost for the current period?
A. $414,000.
B. $386,000.
C. $394,000.
D. $406,000.
E. $410,000.
Answer
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Related questions
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Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received.
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Wren Company determined that in the production of their products last period; they had a favorable price variance and an unfavorable quantity variance for direct materials. What might be the cause(s) of this pattern of variances?
It is possible that the production department found ways to reduce material waste and the purchasing department was able to reduce the cost of materials at the same time. However, the company's purchasing manager may have purchased inferior materials to save costs that might have caused production to waste more materials than expected. The favorable price variance may not be worth what it cost if materials were wasted.
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Explain variance analysis. Describe how variance analysis assists managers.
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A. $25.02.
B. $11.52.
C. $2.40.
D. $2.52.
E. $3.42.
Q:
Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.
Direct labor standard (2 hrs. @ $12.75/hr.) $25.50 per finished unit
Actual direct labor hours 81,500 hrs.
Budgeted units 42,000 units
Actual finished units produced 40,000 units
Standard variable OH rate (2 hrs. @ $14.30/hr.) $28.60 per finished unit
Standard fixed OH rate ($336,000/42,000 units) $8.00 per unit
Actual cost of variable overhead costs incurred $1,140,000
Actual cost of fixed overhead costs incurred $338,000
A. $25,450 favorable.
B. $4,000 favorable.
C. $4,000 unfavorable.
D. $21,450 favorable.
E. $21,450 unfavorable.
Q:
Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance.
Direct labor standard (2 hrs. @ $12.75/hr.) $25.50 per finished unit
Actual direct labor hours 81,500 hrs.
Budgeted units 42,000 units
Actual finished units produced 40,000 units
Standard variable OH rate (2 hrs. @ $14.30/hr.) $28.60 per finished unit
Standard fixed OH rate ($336,000/42,000 units) $8.00 per unit
Actual cost of variable overhead costs incurred $1,140,000
Actual cost of fixed overhead costs incurred $338,000
A. $18,300 favorable.
B. $18,000 favorable.
C. $18,000 unfavorable.
D. $18,300 unfavorable.
E. $14,300 unfavorable.
Q:
Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance.
Direct labor standard (2 hrs. @ $12.75/hr.) $25.50 per finished unit
Actual direct labor hours 81,500 hrs.
Actual finished units produced 40,000 units
Actual cost of direct labor $1,100,250
A. $19,125 favorable.
B. $80,250 favorable.
C. $61,125 favorable.
D. $19,125 unfavorable.
E. $80,250 unfavorable.
Q:
Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials quantity variance.
Direct materials standard (6 lbs. @ $2/lb.) $12 per finished unit
Actual direct materials used 243,000 lbs.
Actual finished units produced 40,000 units
Actual cost of direct materials used $483,570
A. $2,430 unfavorable.
B. $3,570 unfavorable.
C. $2,430 favorable.
D. $6,000 unfavorable.
E. $3,570 favorable.
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A. $20,000 unfavorable.
B. $20,000 favorable.
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E. $36,000 favorable.
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D. $32,000 unfavorable.
E. $32,000 favorable.
Q:
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B. Debited for actual labor cost.
C. Credited for standard labor cost.
D. Credited for actual labor cost.
E. Not used.
Q:
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A. A debit to Work in Process for $19,500.
B. A credit to Raw Materials for $19,270.
C. A debit to Direct Material Price Variance for $470.
D. A credit to Direct Material Quantity Variance for $700.
E. A debit to Cost of Goods Sold for $230.
Q:
Regarding overhead costs, as volume increases:
A. Total fixed cost increases, total variable cost remains constant.
B. Total fixed cost remains constant, total variable cost increases.
C. Total variable cost decreases, total fixed cost remains constant.
D. Both total fixed cost and total variable cost increase.
E. Both total fixed cost and total variable cost remain constant.
Q:
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Advertising Amount of dollar sales $8,000
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Sales
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Bakery 800 $30,000
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Totals 3,000 $152,000
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A. $6,000.
B. $9,000.
C. $4,145.
D. $1,200.
E. $3,000.
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Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows:
Admin. Maintenance Assembly Packaging
Operating costs $30,000 $15,000 $70,000 $45,000
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Sq. ft. of space 2,000 3,000
The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:
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E. $2,000.
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Depreciation 20,000 Cost of goods sold
Advertising 40,000 Net sales
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B. $45,000.
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Investment
Center A Investment
Center B
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Ribs 4,000 4.75
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C. $8,600.
D. $10,750.
E. $43,000.
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L M
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Market value at split-off point $8/lb. $16/lb.
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