1.The following 2017 budget information relates to Target Corporation unit production: Quarter Units 1 20,000 2 25,000 3 30,000 4 50,000 Target would like to prepare a direct labor budget. Each unit requires 1.5 hours of direct labor. The union contract provides for the wage rate to be $12 per hour for the first 2 quarters and a wage increase to $14 per hour on July 1.Prepare a direct labor budget for 2017.Q= 2.Electric Zero produces relay units for generators. Each relay has a standard cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23. In July, the company incurred 1,020 labor hours at a cost of $22,950. How much is the labor efficiency variance? A) $460 unfavorableB) $50 favorable C) $510 favorable D) $460 favorable Q=3. Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 76,000 Expected sales volume (units), July For each unit produced, the direct materials requirements are as follows Material A ($5 per lb.) 3 lbs. Material B ($18 per lb.) 0.5 lb. The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production are:a. $1,080,000 for A; $1,296,000 for B.b. $1,170,000 for A; $702,000 for B.c. $1,125,000 for A; $675,000 for B.d. $1,080,000 for A; $648,000 for B.
1.The following 2017 budget information relates to Target Corporation unit production: Quarter Units 1 20,000 2 25,000 3 30,000 4 50,000 Target would like to prepare a direct labor budget. Each unit requires 1.5 hours of direct labor. The union contract provides for the wage rate to be $12 per hour for the first 2 quarters and a wage increase to $14 per hour on July 1.Prepare a direct labor budget for 2017.Q= 2.Electric Zero produces relay units for generators. Each relay has a standard cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23. In July, the company incurred 1,020 labor hours at a cost of $22,950. How much is the labor efficiency variance? A) $460 unfavorableB) $50 favorable C) $510 favorable D) $460 favorable Q=3. Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 76,000 Expected sales volume (units), July For each unit produced, the direct materials requirements are as follows Material A ($5 per lb.) 3 lbs. Material B ($18 per lb.) 0.5 lb. The total direct materials purchases of Materials A and B (assuming no beginning or ending materials inventory) required for July production are:a. $1,080,000 for A; $1,296,000 for B.b. $1,170,000 for A; $702,000 for B.c. $1,125,000 for A; $675,000 for B.d. $1,080,000 for A; $648,000 for B.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.The following 2017 budget information relates to Target Corporation
unit production:
Quarter
Units
1
20,000
2
25,000
3
30,000
4
50,000
Target would like to prepare a direct labor budget. Each unit requires 1.5
hours of direct labor. The union contract provides for the wage rate to
be $12 per hour for the first 2 quarters and a wage increase to $14 per
hour on July 1.Prepare a direct labor budget for 2017.Q= 2.Electric Zero
produces relay units for generators. Each relay has a standard cost of
$67. Standards call for two relays per generator. In July, the company
purchased 120 relays for $7,560. The company used 104 relays in the
production of 50 generators, with four relays damaged in the installation
process. The standard quantity of labor is 20 hours per generator, with a
standard wage rate of $23. In July, the company incurred 1,020 labor
hours at a cost of $22,950. How much is the labor efficiency variance?
A) $460 unfavorableB) $50 favorable C) $510 favorable D) $460
favorable Q=3. Production estimates for July for Starling Co. are as
follows:
Estimated inventory (units), July 1
8,500
Desired inventory (units), July 31
10,500
76,000
Expected sales volume (units), July
For each unit produced, the direct materials requirements are as follows
Material A ($5 per lb.)
3 lbs.
Material B ($18 per lb.)
0.5 lb.
The total direct materials purchases of Materials A and B (assuming no
beginning or ending materials inventory) required for July production
are:a. $1,080,000 for A; $1,296,000 for B.b. $1,170,000 for A; $702,000
for B.c. $1,125,000 for A; $675,000 for B.d. $1,080,000 for A; $648,000
for B.
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