Acc3320-Final Exam Essay

1664 WordsFeb 15, 20137 Pages
Instructor: xx. xxxxx ACC3320 Accounting for Decision Making Final Exam 1. Riggs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is $0.45 per unit of output. If the company's performance report for last month shows a $90 favorable variance for indirect materials and if 8,700 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been: A. $4,005 B. $3,915 C. $3,825 D. $3,735 2. Chmielewski Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,560 patient-visits and the actual level of activity was 1,530 patient-visits. The clinic's director budgets…show more content…
A. $6,000 favorable B. $6,150 favorable C. $6,300 favorable D. $6,450 favorable 13. The budget for May called for production of 9,000 units. Actual output for the month was 8,500 units with total direct materials cost of $127,500 and total direct labor cost of $77,775. The direct labor standards call for 45 minutes of direct labor per unit at a cost of $12 per direct labor-hour. The direct materials standards call for one pound of direct materials per unit at a cost of $15 per pound. The actual direct labor-hours were 6,375. Variance analysis of the performance for the month of May would indicate: A. $7,500 favorable materials quantity variance. B. $1,275 favorable direct labor efficiency variance. C. $1,275 unfavorable direct labor efficiency variance. D. $1,275 unfavorable direct labor rate variance. 14. Information on Rex Co.'s direct material costs for May follows: For the month of May, what was Rex's direct materials price variance? A. $2,800 favorable B. $2,800 unfavorable C. $6,000 unfavorable D. $6,000 favorable 15. Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October follows: What is the materials purchase price variance? A. $90 favorable B. $90 unfavorable C. $100 favorable D. $100 unfavorable 16. Buckler Company manufactures desks with vinyl tops. The standard

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