Reference no: EM132759145
Questions -
Q1. Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory overhead budget is $552,000 with 513,000 estimated direct labor hours. It is further estimated that small table lamp production will require 289,000 direct labor hours, and desk lamp production will need 125,000 direct labor hours.
Using a single plantwide factory overhead rate with an allocation base of direct labor hours, the factory overhead that Blackwelder Factory will allocate to desk lamp production if actual direct labor hours for the period for desk lamps is 188,000 would be
a. $203,040
b. $848,553
c. $463,286
d. $348,960
Q2. Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50. Determine the following: Enter favorable variances as negative numbers.
a. Direct materials price variance $? FAVORABLE/UNFAVORABLE
b. Direct materials quantity variance $? FAVORABLE/UNFAVORABLE
c. Total direct materials cost variance $? FAVORABLE/UNFAVORABLE
Q3. Greyson Company produced 8,300 units of product that required 4.25 standard hours per unit. Determine the standard fixed overhead cost per unit at 27,000 hours, which is 100% of normal capacity, if the favorable fixed factory overhead volume variance is $14,895. Round your answer to two decimal places.
Q4. Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $592,000, and fixed costs are $202,000. How much will operating income change if sales increase by $45,000?
a. $12,600 decrease
b. $32,400 increase
c. $12,600 increase
d. $32,400 decrease
Q5. If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is
a. 7,400 units
b. 7,100 units
c. 7,000 units
d. 6,700 units