Question

3-

Claremont Company sells refurbished copiers. During the month, the company sold 180 copiers at an average price of $3,000 each. The budget for the month was to sell 175 copiers at an average price of $3,200. The expected total sales for 180 copiers were:

Multiple Choice

• $540,000.

• $576,000.

• $525,000.

• $560,000.

• $550,000.

  9- A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500. What is the total labor cost variance?

  Multiple Choice

• $2,000 unfavorable.

• $3,000 unfavorable.

• $5,500 unfavorable.

• $8,000 unfavorable.

• $9,000 unfavorable.

  13- Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is:
  

  Direct materials standard (7 kg. @ $2/kg)	$	14	per finished unit
  Actual cost of materials purchased	$	322,500
  Actual direct materials purchased and used		150,000	kg

  Multiple Choice

• $27,500 unfavorable.

• $50,000 unfavorable.

• $50,000 favorable.

• $22,500 unfavorable.

• $22,500 favorable.

  12- Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period.
  

  Standard:
  Direct labor (3.2 hrs. per unit @ $12/hr.)	$	38.40	per unit
  Actual cost incurred:
  Direct labor (24,500 hrs. @ $12.50/hr.)	$	306,250

  Multiple Choice

• $12,250 unfavorable.

• $14,700 unfavorable.

• $14,700 favorable.

• $12,250 favorable.

• $26,950 favorable.

  16- A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500. What is the direct labor rate variance?

  Multiple Choice

• $27,500 unfavorable.

• $22,000 favorable.

• $16,000 unfavorable.

• $16,000 favorable.

• $6,000 unfavorable.

  20- Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance?

  Multiple Choice

• $400 unfavorable.

• $450 unfavorable.

• $2,500 unfavorable.

• $2,550 unfavorable.

• $2,950 unfavorable.

Answer 1

The answer has been presented in the supporting sheet. First 4 parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part 3) 3 The correct answer is $576,000 4 6 Explanation 7 Expected sales = budgeted selling price * units sold 8 = 180 *3200 = $ 576000 11 Part 9) 12 The correct answer is 13 $5500 Unfavourable 15 Total Labor cost variance = actual cost - standard cost 16 = 269500 - (8000*3*11) 17 =$ 5500 Unfavourable то 19 Part 13) 20 The correct answer is $ 50000 favourable 21 23 direct material quantity = (actual qty- standard qty)*standard rate 24 (150000-(25000*7)*2 = $ 50000 Favourable 25 27 Part 12) 28 The correct answer is 29 $12250 Unfavourable 31 Direct labor rate variance 32 = (actual rate - standard rate)*actual hours 33 = (12.5-12)*24500 34 = $12250 Unfavourable 35 36 As per HomeworkLib policy we are required to solve the first 4 parts only. For remaining parts you have to post separate question. Sheet505/ Sheet506 Sheet504 Sheet502 Sheet503 Sheet507 Sheet508 Sheet509 Sheet510