Question

41 to 46 please

41) 41) A comeany s seting its dirr materia and drct laor standards for its eading product. Direct materials cost from e supper are 19per square ootet of purdhase discount Freight-in foot Basic wages of the oemery ine personnel are $14 per hour amourts to so p matety 21% of wg Barets amount to $2 per hour How much is the Payroll taxes are appr die O) $1600 AL ats cot standard per square foor 91500 emple of a direct materiah emiciency standard 6 direct labor hours per unit o s40 per direct tabor hour 42) Which of the fotodon A) 50 square feet per unit ) so 95 per square foot 43) 43) What does a cost variance measure A) the change in costs over time 8) the volume discounts companies recelve when ordering dirsct materlals in large quantities C) the diference between the cost the company pays and the cost its competitors pay b) how well the business keeps unit costs of material and labor inputs within standards 44) Aquatic Marine Stores Company manufactures special metallic materlals and decorative fittings for Auxury yachts that require highly skilled labor. Aquatic uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows 44) Direct materials: 4 pounds per unit: $6 per pound Direct labor 2 hours per unit; $17 per hour During the first quarter, Aquatic produced 4000 units of this product. Actual direct materlals and direct labor costs were $65,000 and $329,000, respectively. For the purpose of preparing the flexible budget, calculate the total standard direct materlals cost at a production volume of 4000 units. A) $65,000 B) $96,000 C) $24,000 D) $16,000 45) Which of the following will result in an unfavorable direct materials efficiency variance? A) the actual cost per unit of direct materials exceeds the standard cost of direct materials B) the actual quantity of direct materials used per unit is less than the standard quantity of direct materlals allowed per unit 45) C) the actual quantity of direct materla ls used per unit exceeds the standard quantity of direct materlals allowed per unit D) the actual cast per unit of direct materials is less than the standard cost per unit of direct materials 46) Devon Company has collected the following data for one of its products: Direct materlals standard (3 pounds @ $1/lb.) Direct materlals flexible budget variance-unfavorable $3 per unit $15,500 101,000 Actual direct materials used pounds 18,000 units Actual units produced What is the direct materlals efficiency variance? A) $18,000 U D) $47,000 F C) $18,000 F B) $47,000 U

Answer 1

41)Direct Material cost standard per square foot = Purchase cost + Freight in

= 9+0.4

= $9.4

i.e. A

42)Direct Material Efficiency measures the quantity of direct material used

The answer is A)50 square foot per unit

43)D)Within standards

44)Standard Direct material cost = Standard cost per unit*Actual Volume

= 4*6*4,000

= $96,000

i.e. B

45)Direct Material Efficiency Variance = (Standard Quantity – Actual Quantity)*Standard Price

C) Actual quantity exceeds standard quantity

46)Direct Material Efficiency Variance = (18,000*3 – 101,000)*1

= $47,000 U

i.e. B