Question :
37) ______ A) determining the actual selling price per unit. : 1196267
37) ______ A) determining the actual selling price per unit. B) determining the budgeted variable cost per unit. C) determining the budgeted fixed costs. D) determining the actual quantity of the cost driver. E) determining the budgeted selling price per unit. 38) A packaging Company produces a variety of cardboard boxes in an automated process. Expected production per month is 160,000 units. The required direct materials costs $0.30 per unit. Manufacturing overhead costs are $24,000 per month. Variable manufacturing overhead is allocated based on units of production. Direct labour is budgeted to be $6,400. The company only produces based on customer orders, so all production is considered sold as it is produced. Revenue for the month will be $240,000.
What is the budgeted contribution margin per unit? 38) ______ A) $1.50 per unit B) $1.16 per unit C) $1.01 per unit D) $1.05 per unit E) $1.31 per unit 39) A packaging Company produces cardboard boxes in an automated process. Expected production per month is 40,000 units. The required direct materials costs $0.30 per unit. Manufacturing overhead costs are $24,000 per month. Manufacturing overhead is allocated based on units of production. Contribution margin per unit is $0.85, and administration fixed costs are $7,500 per month.
What is the flexible budget amount for operating income for 40,000 and 20,000 units, respectively? 39) ______ A) $40,000; $34,000 B) $36,000; $30,000 C) $44,000; $38,000 D) $26,000; $20,000 E) $2,500; <$14,500> 40) The flexible-budget variance measures 40) ______ A) [actual results x the actual level of the revenue or cost driver] minus [flexible budget amount x the actual level of the revenue or cost driver]. B) [expected expenditures for the actual number of outputs] plus [ the actual expenditures for the actual number of outputs]. C) what the costs and revenues should have been for the budgeted number of outputs. D) the difference between budgeted and actual variable costs. E) the difference between budgeted expenditures and actual expenditures for the budgeted number of outputs. 41) The input standard cost per completed unit may be calculated by 41) ______ A) dividing the budgeted price per input by the budgeted number of inputs for one unit of output. B) multiplying the budgeted price per input by the budgeted number of inputs for one unit of output. C) multiplying the budgeted number of outputs for one input by the budgeted price per output unit. D) dividing the budgeted number of outputs for one input by the budgeted price per output unit. E) dividing the variable price per input by the budgeted number of inputs for one unit of output. 42) Compute the total standard cost per book for Publisher’s Company using the following information:
Direct Materials:1 ream of paper allowed per output unit manufactured, at $5.00 per ream.
Direct Mfg. Labour: 0.35 labour-hours of input allowed per output unit finished, at $17.50 standard cost per hour.
Variable Manufacturing: assigned on the basis of 0.25 per hour at $25 standard cost per hour. 42) ______ A) $14.63 per output unit B) $48.60 per output unit C) $17.38 per output unit. D) $11.13 per output unit E) $47.50 per output unit 43) The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (All materials purchased were used.):
Standard cost: $6.00 per kilogram of clay.
Total actual cost: $11,200.
Standard cost allowed for units produced was $12,000.
Materials efficiency variance was $240 unfavourable.
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour.
Actual cost per hour was $24.50.
Labour efficiency variance was $672 favourable.
What is the standard direct material amount per pot? 43) ______ A) 3.00 kilograms B) 4.00 kilograms C) 2.12 kilograms D) 1.00 kilogram E) 1.88 kilograms 44) The use of standard costs is widespread among many countries. Surveys indicate all of the following reasons EXCEPT: 44) ______ A) separating variable and fixed costs. B) price policy. C) cost management. D) budgetary planning. E) financial statement presentation. 45) Which of the following is not likely to be related to an unfavourable direct materials price variance? 45) ______ A) standard costs were determined incorrectly B) the negotiating skills of the marketing manager C) unexpected price increases in direct materials D) materials had to be purchased from a new supplier E) actual direct material purchases were in smaller quantities than normal, resulting in missed volume discounts Use the information below to answer the following question(s).
Tractor Corporation produces toy tractors. The company uses the following direct cost categories:
CategoryStandard InputsStd. Cost
for 1 output per input
Direct Materials4.00$12.50
Direct Labour1.40 9.50
Direct Marketing0.54 5.50
Actual performance and budgeted performance for the company is shown below:
Actual output: (in units)5,000
Direct Materials:
Materials costs$299,000
Input purchased and used23,000
Actual price per input$13.00
Direct Manufacturing Labour:
Labour costs$ 95,000
Labour-hours of input9,500
Actual price per hour$10.00
Direct Marketing Labour:
Labour costs$ 40,000
Labour-hours of input5,000
Actual price per hour$ 8.00
