In: Accounting
18.
The following materials standards have been established for a particular product: |
Standard quantity per unit of output |
4.5 |
grams |
Standard price |
$12.00 |
per grams |
The following data pertain to operations concerning the product for the last month: |
Actual materials purchased |
3,400 |
grams |
Actual cost of materials purchased |
$ 39,610 |
|
Actual materials used in production |
2,700 |
grams |
Actual output |
530 |
units |
The direct materials purchases variance is computed when the materials are purchased. |
Materials price variance ________________________
Materials quantity variance______________________
19.
The following standards for variable overhead have been established for a company that makes only one product: |
Standard hours per unit of output |
6.5 |
hours |
Standard variable overhead rate |
$13.00 |
per hour |
The following data pertain to operations for the last month: |
Actual hours |
9,800 |
hours |
Actual total variable overhead cost |
$125,200 |
|
Actual output |
1,500 |
units |
Required: |
|||
a. |
What is the variable overhead rate variance for the month? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)
|
Variable overhead rate_______________________
Variable overhead efficiency variance ________________
20.
Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: |
Sales |
$17,580,000 |
Net operating income |
$738,360 |
Average operating assets |
$4,860,000 |
The division's margin is closest to: (Round your answer to 1 decimal place.) |
15.2%
4.2%
16.4%
20.6%
21.
Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below: |
Sales |
$17,560,000 |
Net operating income |
$1,071,160 |
Average operating assets |
$4,300,000 |
The division's turnover is closest to: (Round your answer to 2 decimal places.) |
16.39
4.08
0.25
4.01
22.
Aguilera Industries is a division of a major corporation. Data
concerning the most recent year appears below: |
Sales |
$17,910,000 |
Net operating income |
$1,199,970 |
Average operating assets |
$4,250,000 |
The division's return on investment (ROI) is closest to: |
6.70%
28.23%
24.38%
3.70%
25.
Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.) |
Investment required in equipment |
$460,000 |
Annual cash inflows |
$77,000 |
Salvage value |
$0 |
Life of the investment |
16 years |
Required rate of return |
12% |
The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. |
The payback period for the investment is closest to: |
0.2 years
1.0 years
4.0 years
6.0 years
18)Materials price variance =Actual cost [AQ purchased *SR]
39610- [3400*12]
39610-40800
-1190 F
Materials quantity variance =SR[AQ-SQ]
12[2700- (530*4.5)]
12[2700- 2385]
3780 U
19)Variable overhead rate = AH[AR-SR]
= 125200- [9800*13]
125200 - 12740
- 2200 F
Variable overhead efficiency variance =SR[AH-SH]
= 13 [9800- (1500*6.5)]
13[9800-9750]
650 U
20)Correct option is ""B -4.2%
margin =net operating income /sales
= 738360/17580000
= .042 or 4.2%
21) correct option is " B"'
Division turnover =sales /average operating asset
= 17560000/4300000
=4.08