B: $60,000 C: $120,000
B: $60,000C: $120,000
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Daisy Bakes Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months
Daisy Bakes Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months
of the year.
What is the estimated variable order-filling cost component per order?
Month Number of Orders Costs
January 1,200 $3,120
February 1,300 $3,185
March 1,800 $4,320
April 1,700 $3,895
a) $2.00
b)$2.42
c) 2.48
d) $2.50
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Janice Foeld Company manufactures part Z for use in its production cycle. The costs per unit for 10,000 units of part Z are as follows.
Janice Foeld Company manufactures part Z for use in its production cycle. The costs per unit
for 10,000 units of part Z are as follows.
| Direct materials | $3 |
| Direct labor | 15 |
| Variable overhead | 6 |
| Fixed overhead | 8 |
| TOTAL | $32 |
Baloney Company has offered to sell Janice Foeld 10,000 units of part Z for $30 per unit. If Janice Foeld accepts Baloney’s offer, the released facilities can be used to save $45,000 in relevant costs in the manufacture of part A. In addition, $5 per unit of the fixed overhead applied to part Z would be totally eliminated.
The total relevant costs to buy part Z are
a) $320,000.
b) $300,000.
c) $290,000.
d) $255,000
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Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January.
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of
January.
| Direct labor hours | 24,000 |
| Variable factory overhead | $ 48,000 |
| Fixed factory overhead | $108,000 |
| Total factory overhead per DLH | $6.50 |
| Actual data for January were as follows: | |
| Direct labor hours worked | 22,000 |
| Total factory overhead | $147,000 |
| Standard DLH allowed for the capacity attained | 21,000 |
Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January?
a) $3,000
b) $13,500 unfavorable
c) $9,000 favorable
d) $10,500 unfavorable
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