In: Accounting
1.A job was budgeted to require 6 hours of labor per unit at $10.00 per hour. The job consisted of 6,800 units and was completed in 37,800 hours at a total labor cost of $410,400. What is the total labor cost variance?
400 unfavorable.
6800 unfavorable.
2400 unfavorable
3820 unfavorable
6220 unfavorable
2. Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $62,000 after deducting variable costs of $90,000 and fixed costs of $13,000. Based on this information, the budgeted amounts of fixed and variable costs for 18,000 units would be:
a.$13,000 of fixed costs and $108,000 of variable costs.
b.$13,000 of fixed costs and $90,000 of variable costs.
c.$15,600 of fixed costs and $90,000 of variable costs.
d.$13,000 of fixed costs and $93,000 of variable costs.
e.$15,600 of fixed costs and $108,000 of variable costs.
3. A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The fixed costs expected if the company produces and sells 16,000 units is:
a.$16,000.
b.$64,000.
c.$48,000.
d.$24,000.
e.$18,000.
4.A company provided the following direct materials cost information. Compute the direct materials quantity variance
Standard costs assigned: |
|||
Direct materials standard cost (448,000 units @ $3.90/unit) |
$ |
1,747,200 |
|
Actual costs: |
|||
Direct Materials costs incurred (446,190 units @ $4.00/unit) |
$ |
1,784,760 |
|
$37,560 Favorable. $7,240 Unfavorable $7,240 Favorable. $7,059 Favorable. $7,059 Unfavorable. |
5.Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock’s labor efficiency variance for August?
$12,480 favorable.
$10,376 unfavorable.
$14,584 unfavorable.
$4,160 favorable.
$12,480 unfavorable.
1 | ||
The Answer is | 2,400.00 | unfavorable |
Standard Cost | 6800*6*10 | 408,000.00 |
ActualCost | 410,400.00 | |
total labor cost variance | (2,400.00) |
2 | |
The Answer is | Option A |
Budgeted Units | 15,000.00 |
Budgeted variable costs | 90,000.00 |
Budgeted variable costs per Unit | 6.00 |
At 18000 Units | |
Budgeted Fixed costs | 13,000.00 |
Budgeted Variable costs(18000*6) | 108,000.00 |
3 | |
The Answer is | Option A |
Fixed costs | 16,000.00 |
4 | ||
The Answer is | 7,240.00 | Favorable |
Direct materials quantity variance | (SQ-AQ)*Sp | |
Direct materials quantity variance | (448000-446190)*4 | |
Direct materials quantity variance | 7,240.00 |
5 | |||
The Answer is | 12,480.00 | unfavorable | |
Standard Labour Hour | 10000*2 | 20,000 | Hour |
Actual Labour Hour | 21,040 | Hour | |
Labour Quantity Variance | (SH-AH)*SR | ||
Labour Quantity Variance | (20000-21040)*12 | (12,480.00) |
Dear Student,
Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.
Also please give your positive rating.