Question :
71. JAX Inc.In early 2012, JAX Inc. had budgeted for the : 1291609
71. JAX Inc.In early 2012, JAX Inc. had budgeted for the production and sales of 5,000 units at a sales price of $15 per unit. The following information is available regarding the standard cost for each unit:
Direct materials:
1.50 pounds at $2.50 per lb
Direct labor:
30 minutes of assembly at $.20 per minute
Actual results for 2012 were determined to be as follows:
Number of units produced
and sold:
5,600 units
Sales revenue:
$100,800 ($18 per unit)
Direct materials cost:
$ 22,848 (9,520 lbs purchased and used at $2.40 per lb)
Direct labor cost:
$ 38,192 (173,600 minutes at $.22 per minute)
Refer to the JAX Inc. information above. What was JAX Inc.’s direct labor efficiency variance for 2012? A. $1,120 FB. $1,120 UC. $1,232 FD. $1,232 U
72. Moreland Manufacturing Inc.Moreland Manufacturing Inc. produces and sells stainless steel faucets. In the current year, the company had budgeted for the production and sale of 6,000 faucets but, due to unexpected demand, 7,000 faucets were actually produced and sold. Each faucet has a standard requiring 15 ounces of direct material at a cost of $.40 per ounce and 15 minutes of assembly time at a cost of $.20 per minute. Actual costs for the production of 7,000 faucets were $41,359.50 for materials (106,050 ounces purchased and used @ $.39 per ounce) and $21,560 for labor (98,000 minutes @ $.22 per minute). Refer to the Moreland Manufacturing Inc. information above. Moreland’s direct materials price variance is: A. $1,050.00 F.B. $1,050.00 U.C. $1,060.50 F.D. $1,060.50 U.
73. Moreland Manufacturing Inc.Moreland Manufacturing Inc. produces and sells stainless steel faucets. In the current year, the company had budgeted for the production and sale of 6,000 faucets but, due to unexpected demand, 7,000 faucets were actually produced and sold. Each faucet has a standard requiring 15 ounces of direct material at a cost of $.40 per ounce and 15 minutes of assembly time at a cost of $.20 per minute. Actual costs for the production of 7,000 faucets were $41,359.50 for materials (106,050 ounces purchased and used @ $.39 per ounce) and $21,560 for labor (98,000 minutes @ $.22 per minute). Refer to the Moreland Manufacturing Inc. information above. Moreland’s direct materials usage variance is: A. $ 420 U.B. $ 420 F.C. $6,420 U.D. $6,420 F.
74. Moreland Manufacturing Inc.Moreland Manufacturing Inc. produces and sells stainless steel faucets. In the current year, the company had budgeted for the production and sale of 6,000 faucets but, due to unexpected demand, 7,000 faucets were actually produced and sold. Each faucet has a standard requiring 15 ounces of direct material at a cost of $.40 per ounce and 15 minutes of assembly time at a cost of $.20 per minute. Actual costs for the production of 7,000 faucets were $41,359.50 for materials (106,050 ounces purchased and used @ $.39 per ounce) and $21,560 for labor (98,000 minutes @ $.22 per minute). Refer to the Moreland Manufacturing Inc. information above. Moreland’s direct labor rate variance is: A. $2,100 F.B. $1,800 F.C. $1,960 U.D. $ 560 U.
75. Moreland Manufacturing Inc.Moreland Manufacturing Inc. produces and sells stainless steel faucets. In the current year, the company had budgeted for the production and sale of 6,000 faucets but, due to unexpected demand, 7,000 faucets were actually produced and sold. Each faucet has a standard requiring 15 ounces of direct material at a cost of $.40 per ounce and 15 minutes of assembly time at a cost of $.20 per minute. Actual costs for the production of 7,000 faucets were $41,359.50 for materials (106,050 ounces purchased and used @ $.39 per ounce) and $21,560 for labor (98,000 minutes @ $.22 per minute). Refer to the Moreland Manufacturing Inc. information above. Moreland’s direct labor efficiency variance is: A. $1,600 U.B. $1,400 F.C. $2,100 U.D. $2,100 F.
76. Paw-Paw ProductsPaw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
Direct materials:
5 yards at $1.50 per yard
Direct labor:
40 minutes at $.20 per minute
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute. Refer to the Paw-Paw Products information above. The company’s direct material price variance for the current year is: A. $4,250 F.B. $6,650 U.C. $4,400 U.D. $3,750 F.
77. Paw-Paw ProductsPaw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
Direct materials:
5 yards at $1.50 per yard
Direct labor:
40 minutes at $.20 per minute
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute. Refer to the Paw-Paw Products information above. The company’s direct material usage variance for the current year is: A. $3,750 U.B. $2,250 U.C. $6,000 U.D. $6,650 U.
78. Paw-Paw ProductsPaw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
Direct materials:
5 yards at $1.50 per yard
Direct labor:
40 minutes at $.20 per minute
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute. Refer to the Paw-Paw Products information above. The company’s direct labor rate variance for the current year is: A. $ 2,550 F.B. $10,200 F.C. $10,965 U.D. $16,065 U.
79. Paw-Paw ProductsPaw-Paw Products produces and sells flannel covered dogbeds. In the current year, Paw-Paw had expected to sell 8,000 beds but actually produced and sold 8,500 beds. The following information is available regarding the standard cost to produce a single dogbed:
Direct materials:
5 yards at $1.50 per yard
Direct labor:
40 minutes at $.20 per minute
In the current year, 44,000 yards of material were purchased and used at a cost of $1.60 per yard and 365,500 direct labor minutes were incurred at a cost of $.23 per minute. Refer to the Paw-Paw Products information above. The company’s direct labor efficiency variance for the current year is: A. $ 5,100 U.B. $ 9,100 U.C. $ 5,865 F.D. $20,065 F.
80. Meow Products Ltd.Meow Products Ltd. produces and sells scratching posts for cats. In the current year, the company had expected to sell 12,000 posts but actually produced and sold 10,000 posts. The following information is available regarding the standard cost to produce a single post:
Direct materials:
3 feet @ 1.75 per foot
Direct labor:
15 minutes @ $.30 per minute
In the current year, 38,000 feet of material were purchased out of which 35,000 feet were used at a cost of $1.55 per foot, and 160,000 direct labor minutes were incurred at a cost of $.32 per minute. Refer to the Meow Products Ltd. information above. The company’s direct materials price variance for the current year is: A. $2,350 F.B. $7,600 F.C. $7,000 U.D. $4,100 U.
