QUESTION 23 Landram Corporation makes a product with the following standard cost

Question

QUESTION 23

Landram Corporation makes a product with the following standard costs:

  Inputs

Standard Quantity or Hours

Standard Price or Rate

  Direct materials

                 2.0 kilos

           $7.00 per kilo

  Direct labor

                 1.4 hours

           $10.00 per hour

  Variable overhead

                 1.4 hours

           $4.00 per hour

In March the company produced 4,800 units using 10,320 kilos of the direct material and 2,300 direct labor-hours. During the month, the company purchased 10,890 kilos of the direct material at a cost of $76,770. The actual direct labor cost was $38,242 and the actual variable overhead cost was $11,943.

The company applies variable overhead on the basis of direct labor-hours. The direct materials price variance is computed when the materials are purchased.

The materials price variance for March is: (Do not round intermediate calculations.)

$540 F

$400 U

$400 F

$540 U

7 points   

QUESTION 24

Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

Hour

  Move time

2.3      

  Wait time

19.3      

  Queue time

11.4      

  Process time

1.3      

  Inspection time

0.9      

The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculation and final answer to 2 decimal places.)

0.02

0.08

0.92

0.16

Landram Corporation makes a product with the following standard costs:

Explanation / Answer

The materials price variance for March is: (Do not round intermediate calculations.) A. $540 F B. $400 U C. $400 F D. $540 U 7 points    Material Price Variance = (Standard Cost - Actual Cost per unit) X Actual units purchased Actual Cost per unit = 7.049587 Therefore, Material Price Variance = (7 - 7.04) * 10890 435.6 U The amount which is closest to this is 400 U and hence B is the correct alternative. QUESTION 24 Niemiec Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hour   Move time 2.3         Wait time 19.3         Queue time 11.4         Process time 1.3         Inspection time 0.9       The manufacturing cycle efficiency (MCE) was closest to: (Round your intermediate calculation and final answer to 2 decimal places.) A. 0.02 B. 0.08 C. 0.92 D. 0.16 Manufacturing Cycle Efficiency = Value Added Time/Manufacturing Cycle Time Hence, in this case Value Added Time 2.2 Manufacturing Cycle Time 33 Hence, the MCE will be 0.066666667 Since this is closest to 0.08, hence B is the correct solution.

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