In: Accounting
17.
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours. |
Standard hours per unit of output |
4.40 |
machine-hours |
Standard variable overhead rate |
$11.55 |
per machine-hour |
The following data pertain to operations for the last month: |
Actual hours |
8,800 |
machine-hours |
Actual total variable manufacturing overhead cost |
$95,910 |
|
Actual output |
1,900 |
units |
What is the variable overhead efficiency variance for the month? |
$2,832 U
$7,293 F
$5,082 U
$7,293 U
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. |
Required: |
|
a. |
What is the materials price 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.) |
Materials price variance ______________________ (F,U, NONE)
Materials quantity variance for the month ______________________ (F,U, NONE)
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 variance ______________________ (F,U, NONE)
Variable overhead efficiency variance ______________________ (F,U, NONE)
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.
Top of Form
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: (Round your answer to 2 decimal places.) |
6.70%
28.23%
24.38%
3.70%
Bottom of Form
23.
Fabio Corporation is considering eliminating a department that has a contribution margin of $32,000 and $64,000 in fixed costs. Of the fixed costs, $16,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: |
a decrease of $32,000.
an increase of $32,000.
a decrease of $16,000.
an increase of $16,000.
24.
The management of Fannin Corporation is considering dropping product H58S. Data from the company's accounting system appear below: |
Sales |
$950,000 |
Variable expenses |
$396,000 |
Fixed manufacturing expenses |
$378,000 |
Fixed selling and administrative expenses |
$258,000 |
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $249,000 of the fixed manufacturing expenses and $210,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H58S were dropped? |
Overall net operating income would decrease by $82,000.
Overall net operating income would increase by $82,000.
Overall net operating income would increase by $95,000.
Overall net operating income would decrease by $95,000.
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
26.
In a statement of cash flows, issuing bonds payable affects the:
operating activities section.
financing activities section.
investing activities section.
free cash flow activities section.
27.
In a statement of cash flows, which of the following would be classified as an investing activity?
The sale of the company's own common stock for cash.
The sale of equipment.
Interest paid to a lender.
The issuance of bonds payable.
Solution 17:
C. $ 5,082 U
Variable overhead efficiency variance for the month
= [(Standard hours-Actual hours) X Standard variable overhead rate]
= [(4.40 machine hours X 1,900 units – 8,800 machine hours) X $ 11.55]
= ($ 8,360 - $ 8,800) X $ 11.55
= - $ 440 X $ 11.55
= $ 5,082 (U) Answer
Solution 18:
Materials price variance for the month
= (Actual quantity purchased X Standard rate)- Actual cost
= (3,400 X $ 12) - $ 39,610
= -$ 40,800- $ 39,610
= $ 1,190 F (Answer)
Materials quantity variance for the month
= (Standard quantity allowed? Actual quantity used) × Standard rate
= (4.5 grams X 530 units -2,700 grams) X $ 12 per gram
= 2,385 grams -2,700 grams X $ 12 per gram
=- 315 grams X $ 12 per gram
= - $ 3,780 U (Answer)
Solution 19:
Variable overhead rate variance
=Actual hours worked X (Standard variable overhead rate- Actual variable overhead rate)
=9800 hours – ($ 13 per hour -$125,200 /9800 hours)
=9800 hours ($ 13 per hour-$ 12.77 per hour)
=9800 hours X $ 0.23
=$ 2,254 F (Answer)
Variable overhead efficiency variance
= (Actual hours worked × Standard rate) – (Standard hours allowed × Standard rate)
= (9,800 hours X $13.00 per hour) – (6.5 hours X 1500 units X $13.00 per hour)
=$ 127,400 – 126,750
=$ 650 F (Answer)
Solution 20
a.15.2%
Division's margin is closest to
= Net operating income / Average operating assets X 100
= $738,360 / $4,860,000 X 100
=15.19 rounded to 1 decimal
= 15.2 (Answer)
Note: As per anwerig guidelines, I am submitting answer for first four parts . For rest of the answers post questions separaetly.