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The following are all methods of analyzing capital investments except

20/03/2021 Client: saad24vbs Deadline: 3 days

Question 6 of 40

2.5 Points

Capital Manufacturing designs and manufactures bathtubs for home and commercial applications. Capital recorded the following data for its commercial bathtub production line during the month of March.

Standard DL hours per tub

3

Standard overhead rate per DL hour

$6.50

Standard overhead cost per unit

$19.50

Actual overhead costs

$22,750

Actual DL hours

3,250

Actual overhead cost per machine hour

$7.00

Actual tubs produced

1,100

What is the variable manufacturing overhead efficiency variance for March?

A. $1,625 unfavorable

B. $325 unfavorable

C. $1,625 favorable

D. $325 favorable

Question 7 of 40

2.5 Points

Active Lifestyle Beverages gathered the following information for Job #928.

Standard Total Cost

Actual Total Cost

Direct labor:

Standard: 540 hours at $6.75/hr.

3,645

Actual: 500 hours at $6.50/hr.

3,250

What is the direct labor efficiency variance?

A. $260 favorable

B. $260 unfavorable

C. $270 favorable

D. $270 unfavorable

Question 9 of 40

2.5 Points

Jackson Industries has collected the following data for one of its products.

Direct materials standard (6 pounds per unit @ $0.55/lb.)

$3.30 per finished good

Direct materials flexible budget variance-unfavorable

$12,000

Actual direct materials used

35,000 pounds

Actual finished goods produced

26,000 units

What is the total actual cost of the direct materials used?

A. $19,250

B. $73,800

C. $97,800

D. $85,800

Question 10 of 40

2.5 Points

All of the following are advantages of using standard costs EXCEPT:

A. managers can evaluate the efficiency of production workers.

B. differences between the static budget and the flexible budget can be broken down into price and quantity components.

C. consumer motivation for purchases can be analyzed.

D. standard costing allows companies to create flexible budgets.

Question 11 of 40

2.5 Points

A company uses a single raw material in its production process. The standard price for a unit of material is $2. During the month the company purchased and used 600 units of this material at a price of $2.25 per unit. The standard quantity required per finished product is 2 units, and during the month the company produced 310 finished units. How much was the material quantity variance?

A. $40 favorable

B. $40 unfavorable

C. $45 favorable

D. $45 unfavorable

Question 12 of 40

2.5 Points

Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product. The company actually purchased 11,000 pounds of direct materials costing $25 per pound to make the 5,300 units. What is the direct materials price variance?

A. $16,500 favorable

B. $16,500 unfavorable

C. $15,750 unfavorable

D. $15,750 favorable

Question 13 of 40

2.5 Points

The entry to allocate manufacturing overhead costs to production involves which of the following?

A. Debit to work-in-process inventory for the actual cost of overhead

B. Credit to work-in-process inventory for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output

C. Credit to work-in-process inventory for the actual cost of overhead

D. Debit to work-in-process inventory for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output

Question 14 of 40

2.5 Points

How is the variable manufacturing overhead efficiency variance calculated?

A. The difference between the actual overhead rate and the standard overhead rate multiplied by the standard overhead rate

B. The difference between the standard hours allowed and the actual hours used multiplied by the standard overhead rate

C. The difference between the standard hours allowed and the actual hours used

D. The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate

Question 15 of 40

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