Ruston Corp makes computer desks. The company expects to self 300 units in April
ID: 2488525 • Letter: R
Question
Ruston Corp makes computer desks. The company expects to self 300 units in April and 400 units in May. The has 60 units of goods inventory at April 1 and wants to have 80 units in ending inventory. The budgeted volume for April should be 320 units. 360 units 280 units 300 units Mendez Company produces one product that in sells for $ 10 per unit. For the current year 15,000 units were sold and total fixed costs equaled $ 30.000. Variable manufacturing costs for the product were $ 6 and variable selling exprenses were $ 1. How many units did Mendez need to sell to breakeven? 3,000 7.500 10.000 30.000 At the beginning of the current year, a firm calculated that the standard quantity of labor required to produce one unit of its product was 2 hours. At the end of the year it was learned that it took 2.5 hours of labor to produce each unit. This difference will result in: a favorable labor rate variance. an unfavorable labor rate variance. a favorable labor efficiency variance. an unfavorable labor efficiency variance. Groots. Inc. had the following information available at the end of the year: Work in process inventory, 1/1 $??? Work in process inventory. 12/31 Sl.000 Finished goods inventory. 1/1 $100 Finished goods inventory, 12/31 $500 Sales Revenue $3,000 Total manufacturing costs $1,500 Cost of goods manufactured $1, 200 Based on the above data, what must have been Groots Cost of Goods Sold for the year? $700 $800 $1,100 $1,600Explanation / Answer
12.
Beginning inventory = 60 units
Expected ending inventory = 80 units
Units to be sold = 300 units
Budgeted Production in April = Units to be sold + Expected ending inventory – Beginning inventory = 300 units + 80 units – 60 units = 320 units
Hence, Answer is A.320 units
13.
Contribution margin per unit = Selling price – Variable manufacturing costs – Variable manufacturing expenses = $10 - $6 - $1 = $3
Fixed costs = $30,000
Breakeven units = Fixed costs/Contribution margin per unit = $30,000/$3 = 10,000 units
Hence, Answer is C.10,000.
14.
The actual labor hours are more than standard labor hours. This will lead to increase in the labor costs and an unfavourable labor variance. But since this increase in labor costs is because of labour hours rather than the wages, this shall be called labor efficiency variance.
Hence, Answer is D. an unfavourable labor efficiency variance.
15.
Cost of goods sold = Finished goods inventory 1/1 + Cost of goods manufactured – Finished goods inventory 12/31 = $100 + $1,200 - $500 = $800
Hence, Answer is B.$800
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