5. During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound, If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be O 23,438 pounds. O 93,750 pounds. O31,875 pounds. 106,250 pounds. 6. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are: Direct materials $8 Direct labor 2 Variable overhead 1 Fixed overhead 4 ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable. Should ColorPro make or buy the part? * Make the part because it will save $100,000 over buying it. Make the part because it will save $1,100,000 over buying it. Buy the part because it will save $300,000 over making it. Buy the part because it will save $100,000 over making it. Buy the part because it will save 1,100,000 over making it.
5. During August, 10,000 units were produced. The standard quantity of material allowed per unit was 10 pounds at a standard cost of $3 per pound, If there was an unfavorable usage variance of $18,750 for August, the actual quantity of materials used must be O 23,438 pounds. O 93,750 pounds. O31,875 pounds. 106,250 pounds. 6. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are: Direct materials $8 Direct labor 2 Variable overhead 1 Fixed overhead 4 ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable. Should ColorPro make or buy the part? * Make the part because it will save $100,000 over buying it. Make the part because it will save $1,100,000 over buying it. Buy the part because it will save $300,000 over making it. Buy the part because it will save $100,000 over making it. Buy the part because it will save 1,100,000 over making it.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 4PA: April Industries employs a standard costing system in the manufacturing of its sole product, a park...
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