Question

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months​ follows:

Number of foam cushions to be produced in July	113,000
Number of foam cushions to be produced in August	19,000
Number of foam cushions to be produced in September	6,000

Each cushion requires

44 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 15​% of the following​ month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in​ August?

A.64,600

B. 87,400

C.68,200

D.79 ,600

Mighty Corporation manufactures end tables. Each end table requires .50 direct labor hours in its production. Mighty Corporation has a direct labor rate of​ $13 per direct labor hour. The production budget shows that Mighty Corporation plans to produce 600 end tables in March and​ 1,100 end tables in April. What is the total combined direct labor cost that Mighty Corporation should budget in March and​ April?

A.​3,900

B.11,050

C.​14,300

D.​22,100

Oliver Enterprises has collected the following data for one of its​ products:

Direct materials standard​ (4 pounds per unit​ @ $0.41/lb.)	​$1.64 per finished good
Actual direct materials purchased	​32,000 pounds
Actual Direct Materials Used​ (AQU)	​29,000 pounds
Actual Price​ (AP) paid per pound	​$0.50

How much is the direct materials price​ variance?

A.​$2,610 favorable

B.​$2,880 favorable

C.​$2,880 unfavorable

D.​$2,610 unfavorable

Hushovd Iron Works has collected the following data for its Thunderbolt line of​ products:

Direct materials standard	5 pounds per unit
Direct materials standard cost	​$0.55 per pound
Actual Direct Materials Used​ (AQU)	​20,000 pounds
Actual finished goods purchased	​5,000 units

What is the direct materials quantity​ variance?

A.​$2,750 unfavorable

B​$6,250 favorable

C ​$2,750 favorable

D.​$6,250 unfavorable

The Ticktock Corporation produces clocks. According to company​ standards, it should take 2 hours of direct labor to produce a clock.​ Ticktock's standard labor cost is​$10 per hour. During​ June, Ticktock produced​ 5,600 stopwatches and used​ 14,000 hours of direct labor at a total cost of​ $266,000. What is​ Ticktock's direct labor rate variance for​ June?

A.​$2,800 unfavorable

B.​$126,000 favorable

C ​$2,800 favorable

D.​$126,000 unfavorable

The following information describes a​ company's usage of direct labor in a recent​ period:

Actual direct labor hours used	31 comma 00031,000
Actual rate per hour	$ 23.00$23.00
Standard rate per hour	$ 21.75$21.75
Standard hours for units produced	28 comma 50028,500

How much is the direct labor efficiency​ variance?

A. $54,375 favorable

B. $54,375 unfavorable

C.$57,500 unfavorable

D.$57,500 favorable

Answer 1

17 1) 18 19 20 21 Direct Material required for Cushions Produced in August (19000*4) Add Ending inventory (6000*4)*15% Less Beginning inventory ( 113000*4)*15% Need to Purchase 76000 3600 11400 68200 Answer C) 68,200 23 24 2) 25 26 27 28 29 30 31 32 Particulars March April Total Units to be produced Labor hours required per unit of finished good:s Total labor hours needed Labor rate per Hour Total Direct Labor Cost 600 0.50 300 13.00 3,900 1,100 0.50 550 13.00 7,150 11,050 Answer B) 11,050