# ACC week 6 questions

Quiz
1.
The Litton Company has established
standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials are purchased.
.0/msohtmlclip1/01/clip_image001.png”>
The company applies variable manufacturing overhead to
products on the basis of standard direct labor-hours.

The materials price variance is:

\$400 U

\$400 F

\$600 F

\$600 U

2.

The Litton Company has established
standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials
.0/msohtmlclip1/01/clip_image001.png” alt=”Description: c:usersbharr_000appdatalocalmicrosoftwindowsinetcachecontent.word1.png”>
The company applies variable manufacturing overhead to
products on the basis of standard direct labor-hours.

The variable overhead rate variance is:

\$240 U

\$220 U

\$220 F

\$240 F

3. The following labor standards have
been established for a particular product:.0/msohtmlclip1/01/clip_image002.png”>
The following data pertain to
operations concerning the product for the last month:.0/msohtmlclip1/01/clip_image003.png”>
Required:

a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?4

4
The Litton Company has established standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials are purchased.

.0/msohtmlclip1/01/clip_image001.png”>
The company applies variable manufacturing overhead to
products on the basis of standard direct labor-hours.

The labor rate variance is:

\$480 F

\$480 U

\$440 F

\$440 U

5 The Porter
Company has a standard cost system. In July the company purchased and used
22,500 pounds of direct material at an actual cost of \$53,000; the materials
quantity variance was \$1,875 Unfavorable; and the standard quantity of
materials allowed for July production was 21,750 pounds. The materials price
variance for July was:

\$2,725 F

\$2,725 U

\$3,250 F

\$3,250 U

6 Karmazyn Hospital bases its budgets
on patient-visits. The hospital’s static budget for October appears below.0/msohtmlclip1/01/clip_image004.png”>
The total variable cost at the activity level of 9,000
patient-visits per month should be:

\$157,530

\$209,700

\$207,370

\$159,300

7 Farver Air uses two measures of
activity, flights and passengers, in the cost formulas in its flexible
budgets. The cost formula for plane operating costs is \$44,420 per month plus
\$2,008 per flight plus \$1 per passenger. The company expected its activity in
May to be 80 flights and 281 passengers, but the actual activity was 81
flights and 277 passengers. The actual cost for plane operating costs in May
was \$199,650. The spending variance for plane operating costs in May would be
closest to:

\$5,691 F

\$7,695 U

\$7,695 F

\$5,691 U

8The Litton Company has
established standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per
unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials are purchased..0/msohtmlclip1/01/clip_image001.png”>

The company applies variable manufacturing overhead to
products on the basis of standard direct labor-hours.

The materials quantity variance is:

\$800 U

\$4,000 U

\$760 U

\$760 F

9The following standards for
variable manufacturing overhead have been established for a company that
makes only one product:.0/msohtmlclip1/01/clip_image005.png”>

The following data pertrain to operations last month.0/msohtmlclip1/01/clip_image006.png”>
What is the variable overhead efficiency variance for the
month?

\$9,219 U

\$10,179 U

\$9,867 U

\$648 U

2 points
Question 10
The Litton Company has established standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials are purchased. .0/msohtmlclip1/01/clip_image001.png” alt=”Description: c:usersbharr_000appdatalocalmicrosoftwindowsinetcachecontent.word1.png”>
The company applies variable manufacturing overhead to
products on the basis of standard direct labor-hours.

The labor efficiency variance is:

\$800 F

\$800 U

\$840 F

\$840 U

Question 11
Lotson Corporation bases its
budgets on machine-hours. The company’s static planning budget for May
appears below:
.0/msohtmlclip1/01/clip_image007.png”>

Actual results for the month were:.0/msohtmlclip1/01/clip_image008.png”>
The spending variance for power
costs for the month should be:

\$1,550 F

\$4,160 F

\$1,550 U

\$4,160 U

2 points
Question 12
The following labor standards have
been established for a particular product:
Standard labor hours per unit of
output 4.0 hours
Standard labor rate 12.30 hour
The following data pertain to
operations concerning the product for the last month
Actual hours worked 7100 hours
Actual total labor cost \$89,105
Actual output 1,500 units
What is the labor efficiency
variance for the month?

\$13,805 U

\$13,530 U

\$15,305 U

\$15,305 F

2 points
Question 13
Edington Clinic uses client-visits as its measure of activity.
During September, the clinic budgeted for 2,800 client-visits, but its actual
level of activity was 2,850 client-visits. The clinic has provided the
following data concerning the formulas to be used in its budgeting for
September:
.0/msohtmlclip1/01/clip_image009.png”>
The personnel expenses in the planning budget for September would be
closest to:

\$62,946

\$67,040

\$66,420

\$64,070

2 points
Question 14
Lotson Corporation bases its
budgets on machine-hours. The company’s static planning budget for May
appears below:
.0/msohtmlclip1/01/clip_image007.png”>
Actual results for the month
.0/msohtmlclip1/01/clip_image008.png”>
The spending variance for supplies
costs for the month should be:

\$600 U

\$600 F

\$270 F

\$270 U

2 points
Question 15
Lotson Corporation bases its
budgets on machine-hours. The company’s static planning budget for May
appears below
.0/msohtmlclip1/01/clip_image007.png”>
Actual results for the month

.0/msohtmlclip1/01/clip_image008.png”>

The spending variance for equipment depreciation for the month should
be:

\$320 F

\$3,310 U

\$320 U

\$3,310 F

2 points
Question 16
The Litton Company has established
standards as follows:

Direct material: 3 pounds per unit @ \$4 per pound = \$12 per unit
Direct labor: 2 hours per unit @ \$8 per hour = \$16 per unit
Variable manufacturing overhead: 2 hours per unit @ \$5 per hour = \$10 per
unit

Actual production figures for the past year are given below. The company
records the materials price variance when materials are purchased.
.0/msohtmlclip1/01/clip_image001.png”>
The company applies variable manufacturing
overhead to products on the basis of standard direct labor-hours.

The variable overhead efficiency variance is:

\$520 F

\$520 U

\$500 U

\$500 F

2 points
Question 17
Karmazyn Hospital bases its budgets
on patient-visits. The hospital’s static budget for October appears below:

.0/msohtmlclip1/01/clip_image004.png”>The total cost at the activity level of
9,200 patient-visits per month should be:

\$364,900

\$377,200

\$370,770

\$370,210

2 points
Question 18
Celius Midwifery’s cost formula for
its wages and salaries is \$2,410 per month plus \$292 per birth. For the month
of March, the company planned for activity of 113 births, but the actual
level of activity was 116 births. The actual wages and salaries for the month
was \$35,340. The spending variance for wages and salaries in March would be
closest to:

\$942 F

\$66 F

\$66 U

\$942 U

19
for its supplies cost is \$1,540 per month plus \$12 per frame. For the month
of September, the company planned for activity of 668 frames, but the
actual level of activity was 666 frames. The actual supplies cost for the
month was \$9,980. The supplies cost in the planning budget for September
would be closest to:

\$10,010

\$9,532

\$9,556

\$9,980

Please put the following on the provided excel sheet
The planning budget for march was based on producing and
selling 25000 units However during march the company actually produced and
sold 30,000 units and incurred the following cost.
a.
Purched 160,000 pounds of raw materials at a
coust of \$7.50 per pound. All of this material was used n production.
b.
Direct- laborers worked 55,000 hours at a
rate of \$15.00 per hour
c.
Total variable manufacturing
overhead for the month was \$280,500
d.
and commission, and shipping expensed were \$210,000, \$455,000, and \$115,000
respectively.
1.
What raw materials cost would be
included in the companys flexile budget for march?
2.
What is the material quantity
variance for March?
3.
What is the materials price
variance for March
4.
If Preble has purchased 170,00
pounds of materials at \$7.50 per pound and used 160,000 in production, what
would be the materials quantity variance for March?
5.
If Preble has purchased 170,00
pounds of materials at \$7.50 per pound and used 160,000 in production, what
would be the materials price variance for March?
6.
What direct labor cost would be the
materials price variance for March?
7.
What is the direct labor efficiency
variance for March?
8.
What is the direct labor rate
variance for March?
9.
What variable manufacturing
overhead cost would be included in the companys flexible budget for March
10. What is the
variable overhead efficiency variance for March?
11. What is the
variable overhead rate variance for March?
12. What amounts of
advertising, sales salaries and commissions, and shipping expensed would be
included in the companys flexible budget for March?
13. What is the