Question

QUESTION 14 Cuevas Company produces magic swords. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2014: Standard/Budgeted Data Material y lb. @ $15.00 per Labor 1.2 hrs. @ $12 per Fixed overhead $62,000 Variable $11 per unit overhead Production 2,000 units Actual Data Produced 12,100 units Materials 1,050 lbs. for $14,700 purchased Materials used 1,080 lbs. Labor worked 12,500 hrs. costing $29,375 Overhead $82,000 How much is the standard cost per unit? $21.90 $63.90 $69.00 $62.42

Answer 1

QUESTION NO :14

ANSWER

IN ORDER TO FIND OUT STANDARD COST ,ADD ALL PER UNIT COSTS;

MATERIAL : 15LB    + LABOR 12/HR+ FIXED OVERHEAD 31/UNIT*+ VARIABLE OVERHEAD 11/UNIT = $69

FIXED OVERHEAD 31 IS CALCULATED BY DIVIDING TOTAL FIXED OVERHEAD OF 62000 BY THE NUMBER OF UNIT ,IE, 2000

QUESTION 21

ANSWER

ADJUSTMENT MADE TO NET INCOME WHEN CALCULATING RESIDUAL VALUE FOR ACCOUNTING DISTORTIONS

QUESTION 24

ANSWER

ACCOUNTING DISTORTIONS