Exam 8,9
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Angelo State University *
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MISC
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Accounting
Date
Feb 20, 2024
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docx
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QUESTION 1
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the direct materials price variance.
$5,925 favorable
$7,175 favorable
$7,175 unfavorable
$5,925 unfavorable
4 points QUESTION 2
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the direct materials usage variance.
$1,250 unfavorable
$3,600 favorable
$1,250 favorable
$3,600 unfavorable
4 points QUESTION 3
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the direct labor rate variance.
$3,580 favorable
$1,020 favorable
$1,020 unfavorable
$3,580 unfavorable
4 points QUESTION 4
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the direct labor efficiency variance.
$1,000 favorable
$1,000 unfavorable
$3,600 unfavorable
$3,600 favorable
4 points QUESTION 5
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the variable overhead spending variance.
$2,600 unfavorable
$300 unfavorable
$300 favorable
$2,600 favorable
4 points QUESTION 6
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
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Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the variable overhead efficiency variance.
$2,700 favorable
$400 unfavorable
$400 favorable
$2,700 unfavorable
4 points QUESTION 7
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the fixed overhead spending variance.
$3,000 favorable
$1,000 unfavorable
$1,000 favorable
$3,000 unfavorable
4 points QUESTION 8
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
Determine the fixed overhead volume variance.
$2,000 unfavorable
$1,000 favorable
$2,000 favorable
$1,000 unfavorable
4 points QUESTION 9
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record the purchase of raw materials would include
A debit to direct materials price variance for $7,175
A credit to direct materials price variance for $5,925
A credit to accounts payable for $360,000
A debit to raw materials inventory for $365,925
4 points QUESTION 10
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record the issuance of direct materials used to production would include
A debit to work-in-process inventory for $360,000
A debit to direct materials usage variance for $1,250
A credit to direct materials usage variance for $3,600
A credit to raw materials inventory for $360,000
4 points QUESTION 11
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the
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following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record direct labor cost would include
A debit to direct labor efficiency variance for $3,600
A debit to direct labor rate variance for $3,580
A credit to wages payable for $180,000
A debit to work-in-process inventory for $179,000
4 points QUESTION 12
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record the variable overhead cost applied to production would include
A credit to variable overhead efficiency variance for $2,700
A debit to overhead control for $69,000
A debit to variable overhead spending variance for $2,600
A debit to work-in-process inventory for $72,000
4 points QUESTION 13
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record the fixed overhead cost applied to production would include
A credit to fixed overhead volume variance for $2,000
A credit to overhead control for $36,000
A debit to work-in-process inventory for $33,000
A credit to fixed overhead spending variance for $3,000
4 points QUESTION 14
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 14.
Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products.
Direct materials
(6 lbs. @ $5 per lb.)
$30
Direct labor
(1.5 hours @ $10 per hour)
15
Variable overhead
(1.5 hours @ $4 per hour)
6
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000 hours)
3
During the year, Test Company recorded the following actual results.
Units produced
12,000
Direct materials
(71,750 lbs. purchased and used)
$365,925
Direct labor
(17,900 hours)
182,580
Variable overhead
69,000
Fixed overhead
33,000
2.
The journal entry to record the actual fixed overhead cost would include
A credit to fixed overhead spending variance for $1,000
A debit to fixed overhead efficiency variance for $1,000
A debit to overhead control for $33,000
A debit to work-in-process inventory for $36,000
4 points QUESTION 15
1.
After posting all of the journal entries related to the variable overhead variances and fixed overhead variances, the balance of overhead control will be equal to The amount of the over or underapplied overhead
The applied overhead
$0
The sum of the variable overhead and fixed overhead variances
4 points QUESTION 16
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
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Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine projected sales revenue for Year 1.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
4 points QUESTION 17
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the desired ending finished goods inventory for Year 1.
Note: Give your answer using commas but no decimal points. Do not include the
word “units.”
Example: 12,345
4 points QUESTION 18
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the total number of units to be produced in Year 1, Quarter 3.
Note: Give your answer using commas but no decimal points. Do not include the word “units.”
Example: 12,345
4 points QUESTION 19
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1,000
1
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the desired ending raw materials inventory (in lbs.) in Year 1, Quarter 2.
Note: Give your answer using commas but no decimal points. Do not include the
word “lbs.”
Example: 12,345
4 points QUESTION 20
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
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Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the quantity of raw materials to be purchased (in lbs.) in Year 1, Quarter 4.
Note: Give your answer using commas but no decimal points. Do not include the
word “lbs.”
Example: 12,345
4 points QUESTION 21
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the total cost of direct materials to be purchased in Year 1.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
4 points QUESTION 22
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the total direct labor hours needed in Year 1, Quarter 4.
Note: Give your answer using commas but no decimal points. Do not include the
word “hours.”
Example: 12,345
4 points QUESTION 23
1.
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 16 – 23.
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1
1,000
Year 1, Quarter 2
1,200
Year 1, Quarter 3
1,500
Year 1, Quarter 4
2,000
Year 2, Quarter 1
1,000
All units sell for $10 per unit.
Test Company had 180 units in finished goods inventory on January 1, Year 1. The company’s policy is to have 20% of the following quarter’s projected sales in ending finished goods inventory.
Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The company’s policy is to have 10% of the following quarter’s production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.
Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.
Determine the projected direct labor cost in Year 1, Quarter 3.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
4 points QUESTION 24
1.
Test Company projected the following sales for the first six months of the year.
Total sales
January
$250,000
February
300,000
March
280,000
April
310,000
May
320,000
June
300,000
Of the total sales, 10% are cash sales, and the remaining sales are on credit. Credit sales are collected: 30% in the month of sale, 50% in the first month following the sale, 15% in the second month following the sale, and the remaining credit sales are uncollectible.
Determine total cash collections for April.
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Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
4 points QUESTION 25
1.
Test Company purchases all materials on account. The company pays for 60% of materials purchases in the month of the purchase and 40% in the month following the month of purchase. Budgeted purchase for the first six months of the year are as follow.
Purchases
January
$100,000
February
120,000
March
125,000
April
115,000
May
100,000
June
110,000
Determine the cash payment April for materials purchases.
Note: Give your answer using dollar signs and commas but no decimal points (cents).
Example: $12,345
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QUESTION 1
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-14.
Test Company uses a standard costing system. The company developed the following
standard cost sheet for one of its products.
Direct materials
(6 lbs. @$5 per lb.)
(1.5 hours @ $10 per hour)
$30
15
Direct labor
Variable overhead
(1.5 hours @ $4 per hour)
Fixed overhead
(1.5 hours @ $2 per hour assuming 17,000
hours)
During the year, Test Company recorded the following actual results.
Units produced
13
Direct materials
(71,750 lbs. purchased and
used)
Direct labor
(17,900 hours)
Variable overhead
Fixed overhead
Determine the direct materials price variance.
$7,175 unfavorable
$7,175 favorable
$5,925 unfavorable
$5,925 favorable
12,000
$365,925
182,580
69,000
33,000
63
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Calculate A B C
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Required information
Skip to question
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (4.0 pounds @ $5.00 per pound)
$ 20.00
Direct labor (1.8 hours @ $12.00 per hour)
21.60
Overhead (1.8 hours @ $18.50 per hour)
33.30
Standard cost per unit
$ 74.90
The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level.
Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials
$ 15,000
Indirect labor
75,000
Power
15,000
Maintenance
30,000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation—Building
23,000
Depreciation—Machinery
71,000
Taxes and insurance
18,000
Supervisory salaries
252,500
Total fixed overhead costs
364,500…
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Required information
[The following information applies to the questions displayed below.]
Trini Company set the following standard costs per unit for its single product
Direct materials (30 pounds @ $4.40 per pound)
Direct labor (6 hours @ $14 per hour)
Variable overhead (6 hours @ $9 per hour)
Fixed overhead (6 hours @ $12 per hour)
Standard cost per unit
Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of
the company's capacity of 55,000 units per quarter. The following additional information is available.
Operating Levels
Production (in units)
Standard direct labor hours (6 DLH/unit)
Budgeted overhead (flexible budget)
Fixed overhead
Variable overhead
$ 132.00
84.00
54.00
72.00
$342.00
Direct materials (1,485,000 pounds @ $4.40 per pound)
Direct labor (297,000 hours @ $14 per hour)
Overhead (297,000 hours @ $21 per hour)
Standard (budgeted) cost
Actual costs incurred during the current quarter follow.
Direct…
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Sagar
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Required information
[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product.
Direct materials (4.0 Ibs. @ $5.00 per Ib.)
$
20.00
Direct labor (1.7 hrs. @ $11.00 per hr.)
18.70
Overhead (1.7 hrs. @ $18.50 per hr.)
31.45
Total standard cost
$
70.15
The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level.
Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials
$
15,000
Indirect labor
75,000
Power
15,000
Repairs and maintenance
30,000
Total variable overhead costs
$
135,000
Fixed overhead costs
Depreciation—Building
24,000
Depreciation—Machinery
72,000
Taxes and insurance…
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A company calculated the predetermined overhead based on an estimated overhead of $70,000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product B utilized 1,100 hours, what was the total amount of overhead assigned to the products?
Group of answer choices
A. $35,000
B. $30,800
C. $37,800
D. $68,600
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Please help with answers asap
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What is the total standard cost for one unit of product that would appear on a standard cost card for this general accounting question?
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Compute the overhead allocation rate
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The following standard cost card is provided for Navid Company's Product A:
Direct material (3 lbs. @ $3.00 per lb.)
Direct labor (2 hr @ $8.00 per hr.)
Variable overhead (2 hr. @ $3.00 per hr.)
Fixed overhead (1 hr. @ $3.00 per hr.)
$ 9.00
16.00
6.00
3.00
Total standard cost per unit
$34.00
The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,600 units at the
following costs:
Direct material 12,200 pounds @ $2.50 per pound
Direct labor 5,350 hours @ $16.00 per hour
Overhead $29,940
The standard manufacturing cost per unit is $34.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)
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Rex Industries has identified three different activities as cost drivers: machine
setups, machine hours, and inspections. The overhead and estimated usage are:
Rex Industries data
Activity
Machine setups
Machine hours
Inspections
Overhead per
Activity
$155,000
352,800
120,750
Annual Usage
4,000
14,112
3,500
Overhead Rate per
Activity
$
Complete the chart and compute the overhead rate for each activity. Round to the
nearest penny, two decimal places.
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Rex Industries has identified three different activities as
cost drivers: machine setups, machine hours, and
inspections. The overhead and estimated usage are:
Compute the overhead rate for each activity. Round your
answers to two decimal places.
Overhead
Overhead
Annual
Rate per
Activity
per Activity
Usage
Activity
Machine Setups $157,850
4,100
$
Machine Hours
324,622
14,114
2$
Inspections
119,000
3,400
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please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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Calculate the amount of overhead
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Diskit Shi is reviewing the cost structure of different products. The following information relate a product.
Direct Materials Inventory, beginning of the year
$5,500
Direct Materials Inventory, end of the year
3,000
Direct Materials purchased during the year
45,000
Work in Process Inventory, beginning of the year
9,000
Manufacturing overhead applied during the year
20,000
Work in Process Inventory, end of the year
14,000
Predetermined overhead rate—200% of direct labour costCalculate the amount of direct labour cost incurred during the year.
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kunkel company makes... Please giveme answer accounting
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- please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearlyarrow_forwardQUESTION 1 THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-14. Test Company uses a standard costing system. The company developed the following standard cost sheet for one of its products. Direct materials (6 lbs. @$5 per lb.) (1.5 hours @ $10 per hour) $30 15 Direct labor Variable overhead (1.5 hours @ $4 per hour) Fixed overhead (1.5 hours @ $2 per hour assuming 17,000 hours) During the year, Test Company recorded the following actual results. Units produced 13 Direct materials (71,750 lbs. purchased and used) Direct labor (17,900 hours) Variable overhead Fixed overhead Determine the direct materials price variance. $7,175 unfavorable $7,175 favorable $5,925 unfavorable $5,925 favorable 12,000 $365,925 182,580 69,000 33,000 63arrow_forwardCalculate A B Carrow_forward
- Required information Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.8 hours @ $12.00 per hour) 21.60 Overhead (1.8 hours @ $18.50 per hour) 33.30 Standard cost per unit $ 74.90 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation—Building 23,000 Depreciation—Machinery 71,000 Taxes and insurance 18,000 Supervisory salaries 252,500 Total fixed overhead costs 364,500…arrow_forwardRequired information [The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $9 per hour) Fixed overhead (6 hours @ $12 per hour) Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 55,000 units per quarter. The following additional information is available. Operating Levels Production (in units) Standard direct labor hours (6 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead $ 132.00 84.00 54.00 72.00 $342.00 Direct materials (1,485,000 pounds @ $4.40 per pound) Direct labor (297,000 hours @ $14 per hour) Overhead (297,000 hours @ $21 per hour) Standard (budgeted) cost Actual costs incurred during the current quarter follow. Direct…arrow_forwardSagararrow_forward
- Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) $ 20.00 Direct labor (1.7 hrs. @ $11.00 per hr.) 18.70 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $ 70.15 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 135,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 72,000 Taxes and insurance…arrow_forwardA company calculated the predetermined overhead based on an estimated overhead of $70,000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product B utilized 1,100 hours, what was the total amount of overhead assigned to the products? Group of answer choices A. $35,000 B. $30,800 C. $37,800 D. $68,600arrow_forwardPlease help with answers asaparrow_forward
- What is the total standard cost for one unit of product that would appear on a standard cost card for this general accounting question?arrow_forwardCompute the overhead allocation ratearrow_forwardThe following standard cost card is provided for Navid Company's Product A: Direct material (3 lbs. @ $3.00 per lb.) Direct labor (2 hr @ $8.00 per hr.) Variable overhead (2 hr. @ $3.00 per hr.) Fixed overhead (1 hr. @ $3.00 per hr.) $ 9.00 16.00 6.00 3.00 Total standard cost per unit $34.00 The fixed overhead rate is based on total budgeted fixed overhead of $12,000. During the period, the company produced and sold 5,600 units at the following costs: Direct material 12,200 pounds @ $2.50 per pound Direct labor 5,350 hours @ $16.00 per hour Overhead $29,940 The standard manufacturing cost per unit is $34.00. What is the actual manufacturing cost per unit? (Do not round intermediate calculations.)arrow_forward
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