1.A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n) a.ideal standard. b.loose standard. c.tight standard. d.normal standard. 2.Tom Thumb Pie Company developed the following per unit standards for its product: 4 pounds of direct materials at $24 per pound of direct materials. Last month Tom Thumb Pie Company purchased 4,000 pounds of direct materials for $95,400. The direct materials price variance for last month was a.$11,400 favorable. b.$600 favorable. c.$300 favorable. d.$600 unfavorable. 3.Jane and John’s Kitchen has a per unit standards for direct materials of 4 gallons at $8 per gallon. Last month Jane and John’s Kitchen purchased 22,400 gallons of direct materials at an actual cost of $84,800. 12,000 gallons were used to produce 3,400 units of jams and jellies. The direct materials quantity variance for last month was a.$12,800 favorable. b.$9,600 favorable. c.$12,800 unfavorable. d.$22,400 unfavorable. 4.Andrea’s Kitchen has a standard for Meat Eater’s Delight meals of 2 hours of direct labor at $24 per hour. If Andrea’s actual direct labor cost was $102,400 for 4,000 direct labor hours worked in producing 2,400 meals, the total direct labor variance is a.$3,840 unfavorable. b.$12,800 favorable. c.$8,000 unfavorable. d.$12,800 unfavorable. 5.The standard rate of pay is $10 per direct labor hour. If the actual direct labor payroll was $39,200 for 4,000 direct labor hours worked, the direct labor price (rate) variance is a.$1,600 unfavorable. b.$1,600 favorable. c.$2,000 unfavorable. d.$800 favorable. 6.The standard number of hours that should have been worked for output attained is 16,000 direct labor hours, and the actual number of hours worked was 16,800. If the direct labor price variance was $16,800 unfavorable, and the standard rate of pay was $36 per direct labor hour, what was the actual rate of pay for direct labor? a.$35.00 per direct labor hour. b.$33.00 per direct labor hour. c.$37.00 per direct labor hour. d.$36.00 per direct labor hour. 7.Which one of the following does not affect cash? a.Acquisition and retirement of bonds payable. b.Write-off of an uncollectible accounts receivable. c.Acquisition of treasury stock. d.Payment of cash dividend. 8.Stamford Corporation manufactures belts with a unit variable cost of $84 and a unit sales price of $150. Fixed manufacturing costs were $160,000 when 10,000 belts were produced and sold, equating to $16 per belt. Stamford has a one-time opportunity to sell an additional 1,000 belts at $110 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional belts. How much is the relevant income effect of accepting the special order? a.$84,000. b.$10,000. c.$100,000. d.$26,000. 9.Jungle and Shore Apparel is unsure of whether to sell its camp kits assembled or unassembled. The unit cost of the unassembled kits is $32, while the cost of assembling each kit is estimated at $34. Unassembled kits can be sold for $110, while assembled kits could be sold for $142 per kit. What decision should Jungle and Shore make? a.Sell before assembly, the company will save $2 per unit. b.Sell before assembly, the company will save $30 per unit. c.Process further, the company will save $2 per unit. d.Process further, the company will save $32 per unit. 10.Equipment was purchased for $144,000 and it is estimated to have a $24,000 salvage value at the end of its estimated 8-year life. The equipment is estimated to generate cash inflows of $20,000 each year and will be depreciated by using the straight-line method. The payback period on this investment is a.6 years. b.7.2 years. c.4.8 years. d.4.5 years. 11.Enricksen Corporation purchased a new machine for $400,000 and will use the straight-line method of depreciation over 4 years with no salvage value. If Enricksen's minimum annual rate of return is 10%, this investment must generate expected annual income of a.$6,000. b.$20,000. c.$40,000. d.$100,000.
1.A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n)
a.ideal standard.
b.loose standard.
c.tight standard.
d.normal standard.
2.Tom Thumb Pie Company developed the following per unit standards for its product: 4 pounds of direct materials at $24 per pound of direct materials. Last month Tom Thumb Pie Company purchased 4,000 pounds of direct materials for $95,400. The direct materials price variance for last month was
a.$11,400 favorable.
b.$600 favorable.
c.$300 favorable.
d.$600 unfavorable.
3.Jane and John’s Kitchen has a per unit standards for direct materials of 4 gallons at $8 per gallon. Last month Jane and John’s Kitchen purchased 22,400 gallons of direct materials at an actual cost of $84,800. 12,000 gallons were used to produce 3,400 units of jams and jellies. The direct materials quantity variance for last month was
a.$12,800 favorable.
b.$9,600 favorable.
c.$12,800 unfavorable.
d.$22,400 unfavorable.
4.Andrea’s Kitchen has a standard for Meat Eater’s Delight meals of 2 hours of direct labor at $24 per hour. If Andrea’s actual direct labor cost was $102,400 for 4,000 direct labor hours worked in producing 2,400 meals, the total direct labor variance is
a.$3,840 unfavorable.
b.$12,800 favorable.
c.$8,000 unfavorable.
d.$12,800 unfavorable.
5.The standard rate of pay is $10 per direct labor hour. If the actual direct labor payroll was $39,200 for 4,000 direct labor hours worked, the direct labor price (rate) variance is
a.$1,600 unfavorable.
b.$1,600 favorable.
c.$2,000 unfavorable.
d.$800 favorable.
6.The standard number of hours that should have been worked for output attained is 16,000 direct labor hours, and the actual number of hours worked was 16,800. If the direct labor price variance was $16,800 unfavorable, and the standard rate of pay was $36 per direct labor hour, what was the actual rate of pay for direct labor?
a.$35.00 per direct labor hour.
b.$33.00 per direct labor hour.
c.$37.00 per direct labor hour.
d.$36.00 per direct labor hour.
7.Which one of the following does not affect cash?
a.Acquisition and retirement of bonds payable.
b.Write-off of an uncollectible accounts receivable.
c.Acquisition of
d.Payment of cash dividend.
8.Stamford Corporation manufactures belts with a unit variable cost of $84 and a unit sales price of $150. Fixed
a.$84,000.
b.$10,000.
c.$100,000.
d.$26,000.
9.Jungle and Shore Apparel is unsure of whether to sell its camp kits assembled or unassembled. The unit cost of the unassembled kits is $32, while the cost of assembling each kit is estimated at $34. Unassembled kits can be sold for $110, while assembled kits could be sold for $142 per kit. What decision should Jungle and Shore make?
a.Sell before assembly, the company will save $2 per unit.
b.Sell before assembly, the company will save $30 per unit.
c.Process further, the company will save $2 per unit.
d.Process further, the company will save $32 per unit.
10.Equipment was purchased for $144,000 and it is estimated to have a $24,000 salvage value at the end of its estimated 8-year life. The equipment is estimated to generate
a.6 years.
b.7.2 years.
c.4.8 years.
d.4.5 years.
11.Enricksen Corporation purchased a new machine for $400,000 and will use the straight-line method of depreciation over 4 years with no salvage value. If Enricksen's minimum annual
a.$6,000.
b.$20,000.
c.$40,000.
d.$100,000.
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