1) the average sale period for year 2 is closest to:
a.35.1 days
b.237.9 days
c.58.0 days
d.53.9 days
2) pittmon corporation is developing direct labor standards. the basic direct labor wage
rate is $13.90 per hour. employment taxes are 10% of the basic wage rate. fringe
benefits are $4.28 per hour. a particular product requires 0.90 direct labor-hours per
unit. the allowance for breaks and personal needs is 0.07 direct labor-hours per unit. the
allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per
unit.
required:
a. determine the standard rate per direct labor-hour. show your work!
b. determine the standard direct labor-hours per unit of product. show your work!
c. determine the standard labor cost per unit of product to the nearest cent. show your
work!
3) grast company had $170,000 in sales on account last year. the beginning accounts
receivable balance was $14,000 and the ending accounts receivable balance was
$16,000. the company’s average collection period was closest to:
a.32.21 days
b.30.06 days
c.64.41 days
d.34.35 days
4) (ignore income taxes in this problem.) fast food, inc., has purchased a new donut
maker. it cost $16,000 and has an estimated life of 10 years. the following annual donut
sales and expenses are projected:
the payback period on the new machine is closest to:
a.5 years
b.2.7 years
c.3.6 years
d.1.4 years
5) fontana corporation’s two products have the following characteristics:
the constrained resource is a particular machine that is available for 9,800 minutes each
month. each unit of product s83e requires 16 minutes on this machine and each unit of
product g29p requires 5 minutes on this machine.
up to how much should the company be willing to pay to obtain enough of the
constrained resource to satisfy demand for the two existing products?
a.$3.20 per minute
b.$2.40 per minute
c.$16.00 per minute
d.$38.40 per minute
6) an unfavorable materials quantity variance indicates that:
a.actual usage of material exceeds the standard material allowed for output
b.standard material allowed for output exceeds the actual usage of material
c.actual material price exceeds standard price
d.standard material price exceeds actual price
7) springmeyer clinic uses client-visits as its measure of activity. during august, the
clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940
client-visits. the clinic has provided the following data concerning the formulas used in
its budgeting and its actual results for august:
the net operating income in the planning budget for august would be closest to:
a.$15,416
b.$11,878
c.$11,557
d.$14,560
8) baugus corporation manufactures and sells a single product. the company uses units
as the measure of activity in its budgets and performance reports. during august, the
company budgeted for 6,900 units, but its actual level of activity was 6,950 units. the
company has provided the following data concerning the formulas used in its budgeting
and its actual results for august:
the spending variance for direct materials in august would be closest to:
a.$70 f
b.$855 u
c.$70 u
d.$855 f
9) merone company allocates materials handling cost to the company’s two products
using the below data:
the total materials handling cost for the year is expected to be $218,790.
if the materials handling cost is allocated on the basis of direct labor-hours, how much
of the total materials handling cost would be allocated to the prefab barns? (round off
your answer to the nearest whole dollar.)
a.$109,395
b.$48,620
c.$125,238
d.$68,640
10) munos publishing company uses a job-order costing system to collect costs related
to the manufacture of specialty publications for corporate training.
what journal entry would munos make to record $9,500 of depreciation on its printing
presses?
a.
b.
c.
d.
11) weisgarber clinic uses client-visits as its measure of activity. during august, the
clinic budgeted for 3,900 client-visits, but its actual level of activity was 3,850
client-visits. the clinic has provided the following data concerning the formulas to be
used in its budgeting for august:
the administrative expenses in the planning budget for august would be closest to:
a.$7,780
b.$8,144
c.$8,040
d.$7,770
12) the following production and average cost data for two levels of monthly
production volume have been supplied by a company that produces a single product:
the best estimate of the total monthly fixed manufacturing cost is:
a.$222,000
b.$284,400
c.$305,200
d.$633,600