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Question
Wren Pork Company uses the relative market value method of allocating joint costs in its production of pork products. Relevant information for the current period follows:
Product Pounds Price/lb.
Loin chops 3,000 $5.00
Ground 10,000 2.00
Ribs 4,000 4.75
Bacon 6,000 3.50
The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops?
A. $0.
B. $5,909.
C. $8,600.
D. $10,750.
E. $43,000.
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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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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Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.
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Actual finished units produced 40,000 units
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A. $25,450 favorable.
B. $4,000 favorable.
C. $4,000 unfavorable.
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Actual direct labor hours 81,500 hrs.
Budgeted units 42,000 units
Actual finished units produced 40,000 units
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Actual cost of variable overhead costs incurred $1,140,000
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A. $18,300 favorable.
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C. $18,000 unfavorable.
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Q:
Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance.
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B. $3,570 unfavorable.
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D. $6,000 unfavorable.
E. $3,570 favorable.
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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.
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Advertising Amount of dollar sales $8,000
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Bakery 800 $30,000
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A. $6,000.
B. $9,000.
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Depreciation 20,000 Cost of goods sold
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B. 26.9%
C. 24.1%
D. 39.2%
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L M
Quantities produced 200 lbs. 150 lbs.
Market value at split-off point $8/lb. $16/lb.
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B. $396.
C. $330.
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E. $796.
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