| A company isolates its raw material price variance in order to
provide the earliest possible information to the manager responsible for the
variance. The budgeted amount of material usage for the year was computed as
follows: | |
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| 37,000 units of
finished goods × 2.5 lbs./unit × $6.25/lb. = $578,125 | |
| | | | | | |
| Actual results for
the year were the following: | |
| | | | | | |
| Finished
goods produced | 36,500 units | | | | | |
| Raw materials purchased | 91,500
pounds | | | | | |
| Raw materials used | 90,885
pounds | | | | | |
| Cost per pound | $6.19 | | | | | |
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| The
raw material price variance for the year was: | | | | Answer: |
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| The
raw materials quantity purchased variance was: | | | | Answer: |
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| The
total raw materials variance (for purchased) is: | | | | Answer: |
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| A
cracker manufacturer has the following unit costs for the month of June: |
| | | | | |
| Variable | Variable | Fixed | Fixed | |
| manufacturing | marketing | manufacturing | marketing | |
| cost | cost | cost | cost | |
| $7.25 | $5.08 | $2.90 | $5.80 | |
| | | | | |
| A total of 50,000 units were manufactured during June, 12,000 of
which remain in ending inventory. The manufacturer uses the first-in,
first-out (FIFO) inventory method, and the 12,000 units are the only finished
goods inventory at month end. Using the full absorption costing method, the
manufacturer’s finished goods inventory value would be: |
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| | | Answer: | | |
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| A cost accountant is developing departmental factory overhead
application rates for the company’s tooling and fabricating departments. The
budgeted overhead for each department and the data for one job are shown
below. |
|
|
| | | | | |
| Department: | | | | | |
| Tooling | Fabricating | | | |
| Supplies |
975 | 250 | | | |
| Supervisor’s salaries | 1,750
| 1,800 | | | |
| Indirect labor | 1,350
| 5,200 | | | |
| Depreciation |
800 | 6,200 | | | |
| Repairs | 3,965
| 3,450 | | | |
| Total budgeted overhead | 8,840
| 16,900 | | | |
| | | | | |
| Total direct labor hours |
425 | 605 | | | |
| | | | | |
| Direct labor hours on Job #231 |
16 | 5 | | | |
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| Using the departmental overhead application rates, total
overhead applied to Job #231 in the Tooling and Fabricating Departments will
be |
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| Answer: | | | | |
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| A corporation manufactures a specialty line of dresses using a
job-order costing system. During January, the following costs were incurred
in completing job J-1: |
|
| | | | | |
| Direct labor | 32,000 | | | | |
| Direct materials | 12,000 | | | | |
| Administrative costs | 3,500
| | | | |
| Selling costs | 9,000
| | | | |
| | | | | |
| Factory overhead was applied at the rate of $32 per direct labor
hour, and job J-1 required 395 direct labor hours. If job J-1 resulted in
1,200 good dresses, the cost of goods sold per unit is: |
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| | | Answer: | | |
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