Question

In: Accounting

18. The following materials standards have been established for a particular product:   Standard quantity per unit...

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.)

b.

What is the variable overhead efficiency 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

Solutions

Expert Solution

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


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