general business data bank

141. Luanna Inc. manufactures game consoles. Some of the company's data was misplaced. Use the following information to replace the lost data.

The amount D is:

A. $26,920.

B. $33,720.

C. $35,620.

D. $42,450.

142. Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable. Direct labor efficiency variance = $70,000 (?) The standard calls for 3 direct labor hours per unit of output at $28 per labor hour. The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August. What were the total standard hours allowed for the units manufactured in August?

A. 10,000.

B. 12,000.

C. 12,500.

D. 15,000.

E. 15,625.

143. Joe Malay received the following report on the Division's operation for the month of August:

Direct labor rate variance = $25,000 unfavorable. Direct labor efficiency variance = $70,000 (?) The standard calls for 3 direct labor hours per unit of output at $28 per labor hour. The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August. What was the average direct labor hourly rate the Division paid in August?

A. $24.00.

B. $26.00.

C. $28.00.

D. $30.00.

E. $31.25.

144. Joe Malay received the following report on the Division's operation for the month of August:

Direct labor rate variance = $25,000 unfavorable. Direct labor efficiency variance = $70,000 (?) The standard calls for 3 direct labor hours per unit of output at $28 per labor hour. The standard direct labor hours for the units manufactured is 20 percent more than the total direct labor hours actually worked in August. How many units of the product were produced in August?

A. 4,000.

B. 4,250.

C. 4,500.

D. 4,750.

E. 5,000.

145. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: (4 kilograms x $10.00 per kilogram) $40.00/unit. Labor: (4 hours x $18.00 per hour) $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The actual direct materials purchase price per kilogram in July was:

A. $8.80.

B. $9.90.

C. $10.00.

D. $10.10.

E. $11.80.

146. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit; labor: 4 hours/unit x $18.00 per hour = $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The actual total cost of direct materials used in production during July was:

A. $282,150.

B. $287,850.

C. $297,000.

D. $300,000.

E. $303,000.

147. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit; labor: 4 hours/unit x $18.00 per hour = $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The direct materials usage variance for July was:

A. $3,000 favorable.

B. $43,000 favorable.

C. $12,000 unfavorable.

D. $15,000 unfavorable.

148. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit; labor: 4 hours/unit x $18.00 per hour = $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The direct labor rate variance for July is:

A. $6,600 favorable.

B. $16,600 favorable.

C. $21,000 unfavorable.

D. $57,600 unfavorable.

E. $58,200 unfavorable.

149. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit; labor: (4 hours x $18.00 per hour) $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The direct labor efficiency variance for July was:

A. $6,600 favorable.

B. $7,200 unfavorable.

C. $8,000 unfavorable.

D. $14,400 favorable.

E. $79,200 favorable.

150. Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram) $40.00/unit; labor: 4 hours/unit x $18.00 per hour = $72.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The direct labor flexible-budget variance for July was:

A. $6,600 unfavorable.

B. $7,200 unfavorable.

C. $51,000 favorable.

D. $58,200 favorable.

E. $65,400 favorable.

^151.Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:

All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July:

The sales volume variance, measured in terms of direct labor cost, for July was:

A. $6,600 favorable.

B. $7,200 favorable.

C. $51,000 unfavorable.

D. $57,600 unfavorable.

E. $72,000 unfavorable.

152. Landlubber Company has established a standard direct material cost of 1.5 gallons @ $2 per gallon for one unit of its product. During the past month, actual production of this product was 6,500 units. The direct materials usage (efficiency) variance was $700 (favorable) and the materials price variance (calculated at point of production) was $470 (unfavorable). The entry to charge Work in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include all the following except:

A. A debit to Work in Process Inventory for $19,500.

B. A debit to Direct Materials Inventory for $18,800.

C. A debit to Direct Materials Price Variance for $470.

D. A credit to Direct Material Usage Variance for $700.

E. A credit to Work in Process Inventory for $18,800.

153. What four variances may be included as a component of the total variable cost flexible-budget variance for a given period?

154. What is a direct materials usage ratio? For what purpose is this ratio used?

155. What is a direct labor efficiency variance, and what are some of the likely causes of this variance?

156. Rachael Hair Products shows the following budgeted and actual data for the first quarter of the current fiscal year:

Required: (a) What type of financial control system might the company use to determine whether the company met its short-termfinancial objectives?

(b) For the first quarter of the year, what was the total master (static) budget variance?

(c) In general, into what two component variances can the master (static) budget variance be decomposed? What is the meaning of each of these two variances?

(d) Comment specifically on the financial performance of this company during the 1^st quarter.

(e) What are the primary limitations of traditional financial-control models?

^157.Ann Jacobson's supervisor has asked her to list any concerns she might have about the proposed development of standards to measure performance and to reward superior performance in her department. Ann's department handles customer calls, directing customer

questions and complaints to the appropriate persons within the firm. The company has never before used any performance measure nor paid any performance-related bonuses. It hopes to install a simple but effective system to achieve its twin goals of cost control and performance measurement. Develop the list for Ann based on the information above.

158. Within the context of the material covered in Chapter 14, define the term "sales-volume variance." List some common causes of the sales-volume variance.

159. Discuss some major differences between static and flexible budgets.

160. Klash Company adopted a standard cost system several years ago. The company uses standard costs for all of its inventories. The standard costs for direct materials and labor for its single product are as follows: Materials (12 kilograms/unit x $7.00 per kilogram) = $84.00/unit; direct labor (8 hours/unit x $12.00 per hour) = $96.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:

Note: number of kilograms issued to production during the period = number of kilograms purchased.

Required: (A) Calculate the standard cost of the actual kilograms of material purchased.

(B) Calculate the total standard kilograms for the production of the period (that is, for "equivalent units produced with respect to direct materials")

(C) Calculate the total standard cost of materials for the production of the period.

(D) Calculate the actual price per kilogram of material of material purchased this period.

(E) Calculate the direct labor rate variance.