9. A suit company has the following standards to make one suit: Standard Quantit
ID: 2442589 • Letter: 9
Question
9. A suit company has the following standards to make one suit:
Standard Quantity Standard Price
Direct materials 4 yards per unit $9.50 per yard
Direct Labors 2 hours per unit $12 per hr
The company used 13,000 yards of material in order to make 3,000 suits in April. The direct materials quantity variance is:
$12,000 unfavorable.
$9,500 unfavorable.
$9,500 favorable.
$12,000 favorable.
10. Most service departments, such as machine maintenance and janitorial services, are examples of
investment centers.
profit centers.
cost centers.
transfer centers.
3. Jarme Company makes two products and is implementing an activity-based costing (ABC) system. Previously, all overhead had been applied on the basis of machine hours. The company produces 100,000 units of product D and 5,000 units of product F annually.
Cost Pool Driver & Level Cost in Pool Use of driver by product D Use of driver by product F
Equipment Setup 500 setups $1,000,000 350 setups 150 setups
Materials Ordering 10,000 orders $2,000,000 7,000 orders 3,000 orders
Quality Control 4,000 Inspect $500,000 2,000 Inspects 2,000 insp
Machining 50,000 machine hours $5,000,000 40,000 machine hours 10,000 machine hours
What is the overhead cost per unit for Product F when all overhead is applied based on machine hours?
$170
$340
$68
$200
4. Which of the following is often not a differential cost?
Direct labor
Direct material
Variable manufacturing overhead
Fixed manufacturing overhead
5. Petco makes 2 products, dog collars and cat collars. Each passes through the cutting machine, which is the binding constraint. Dog collars take 6 minutes on the cutting machine and have a contribution margin per unit of $10. Cat collars take 4 minutes on the cutting machine and have a contribution margin per unit of $8.
Assume that there are 2,000 hours available on the cutting machine and that the demand for each product is 15,000 units. How many of each product should be made?
15,000 dog collars; 15,000 cat collars.
10,000 dog collars; 15,000 cat collars.
15,000 dog collars; 7,500 cat collars.
30,000 cat collars.
Explanation / Answer
9.Metirial quantity variance = SP(AQ-SQ) =9.50(4.3333-4) =3.16667 MATIRIAL QUANTITY VARIANCE FOR 3000 SUITS = 3000*3.16667 =$9500 UNFAVOURBLE 10. Profit centre is the correct answer... Because of here generating "revenue " from the service as well as incurring "cost" to the service 3.over heead cost per unit for" F" = over head applied / machine hours note : please provide the question in tabel..it is appearing notwell... 4. fixed manfacturing ovehead: becase fixed manfacturing over head can't be vary with actual production.. 5.option "10000 dog callars and 15000 cat collars can be produced. for dog dollar 10000*6min =60000min / 60 (minite per hour) =1000 hours =for cat dollar 15000 cat dollar*4 mints =60000 / 60 (mintue per hour) =1000 hours for sum of dog and cat = 1000+1000 = 2000 hours..Related Questions
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