A manufacturing company reports the following information for the year: $2,580 a

Question

A manufacturing company reports the following information for the year: $2,580 actual direct materials cost 21 bs standard (budget) direct materials allowed per unit $10 standard (budget) direct materials price per pound Calculate the direct materials price variance. A) 400 favorable B) 400 unfavorable C) 430 favorable D) 430 unfavorable E) 580 favorable F) 580 unfavorable 32. Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period. A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order? A) $174 B) $168 C) $210 D) $180 33. Costs which axe always relevant in decision making are those costs which are: A) variable. B) avoidable. C) sunk. D) fixed.

Explanation / Answer

31. 580 unfavorable

Explanation

Material price variance=actual cost-(actual quantity×standard price)

=2580-(100×2×10)

=580 unfavorable

32.

Relevent cost are

33.

Correct answer is Avoidable cost

Direct material 80 Direct labour 60 Manufacturing overhead(70%×40) 28 Shipping cost 6 Total Variable costs on special order 174 Minimum price for this special order 174

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