28) Panther Auto Club Corp. reported the following results for the past week 510

Question

28) Panther Auto Club Corp. reported the following results for the past week 510 56100 Actual total direct labor cost Budgeted number of cars to be detailled Standard direct labor cost per hour Standard direct labor per car What is Panther Auto Club's direct labor rate variance? (Round intermediary calculations to two decimal places A) $16011 favorable C) $3422 unfavorable B) $3422 favorable D) $16,011 unfavorable 29) CBC Corporation is considering two alternative investment peoposals with the following data: $860,000 5510,000 Estimated annual net cash inflows foß years Residual value $130,000 Straightline Straight-line 13% 13% What is the accounting rate of return for Proposal A? (nd any intermediary calculations to the nearest dollar, anc round your final answer to the nearest hundredth of a percent, XXX) A) 2.62% B) 157% C)323% D) 15.12% 30) The Primera Casa Pillow Company manufactures foam pillows. The namber of pillows to be produced in the upcoemning three months follows in August 19 Each pillow requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Primera Casa Pillow Company need to purchase in August? A) 26,600 B) 45,200 C) 49400 D) 33,800 C-7

Explanation / Answer

28) ANSWER : C) $3422 unfavorable actual per DL hour rate = 6100/510 = $11.96 budgeted per DL hour rate = $5.25 Actual DL hours used = 510 DL rate variance = (actual hour rate - standard hour rate) * actual hours used = (11.96-5.25)*510 = $3422 U 29) ANSWER : C) 3.23% Annual revenue 130000 Annual expenses (860000-42000)/8 102250 Annual return 27750 Annual Investment 860000 Accounting rate of return = 27750/860000 = 3.23% 30) ANSWER : D) 33800 Purchases in August = Total required as per production + desired closing stock - opening stock = (19000*2) + (12000*2*0.30) - (19000*2*0.30) 33800

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