The standard costs and actual costs for factory overhead for the manufacture of
ID: 2443974 • Letter: T
Question
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour
Variable overhead 3 hours @ $2 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of total factory overhead COST variance is?
a. 2000 favorable
b. 50000 unfavorable
c. 2500 unfavorable
d. 0
The amount of the factory overhead controllable variance is?
a. 2000 unfavorable
b. 5000 unfavorable
c. 2500 unfavorable
d. 0
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
Rail Division Locomotive Division Corporate total
Cost of goods 47,200 30,720
Direct Operating
expense 27,200 20,040
Net Sales 98,000 68,000
Interest Expense 2,040
General Overhead 18,160
income tax 4,700
The gross profit for the rails division is
a. 50,800
b. 23,600
c. 13,240
d. 33,280
The income from operations for the rails division is?
A. 5,800
b. 23,600
c. 13,240
d. 33,280
3.
The Anderson Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%.
What is Anderson Company's profit margin?
a.20%
b.80%
c.44.4%
d.18%
What is Anderson company's investment turnover?
a. 1.80
b. 2.25
c. 1.25
d. 1.4
what is anderson company's rate of return on investment?
a. 56%
b. 20%
c. 45%
d. 25%
what is anderson companys residual income?
a. 252000
b. 900000
c. 1400000
d. 760000
4. The Ukulele Company's radio division currently is purchasing transistors from the Xiang Co for $3.50 each. The total number of transistors needed is 8000 per month. Ukelele Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3 in variable costs and $1 in allocated costs.
what should be the range of a possible transfer price?
a. no transfer should take place
b. $3.51 to $3.99
c. $3.01 to $3.99
d. $3.01 to $3.49
what wuld be the total savings (or additional cost) if the transfer were to take place?
a. $4,000 saving
b. $4,000 in additional cost
c. $8000 saving
d. $8000 in additional cost.
Explanation / Answer
The amount of the factory overhead controllable variance is a.2000 unfavourable standard factory overheads 2500*3*.80=$6000 actual factory overheads =$8000 controllable variance =$2000 unfavourable Rail division gross profit sales =$98000 Less:cost of goods sold =$47200 Gross profit =$50800 The answer is a $50800 The net income fromoperations Gross profit =50800 operating expenses =27200 operatingincome =23600 income from opertions Answer B $23600 3. a 20% sales-operating expenses/sales*100 4500000-3600000/4500000*100=20% investment turnover=sales/investment 4500000/2000000=2.25 the answer is B2.25Related Questions
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