20. True Masons budgeted costs for 25,000 linear feet of block are:Fixed manufac
ID: 2428186 • Letter: 2
Question
20. True Masons budgeted costs for 25,000 linear feet of block are:Fixed manufacturing costs $15,000 per monthVariable manufacturing costs $20.00 per linear
True Masons installed 20,000 linear feet of block during March. How much is budgeted total manufacturing costs in March?
A) $400,000
B) $515,000
C) $500,000
D) $415,000
21. Fleck's standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $4 per pound and $14 per hour. The standard overhead rate is $16 per direct labor hour. The total standard cost of Fleck's product is
A) $29.
B) $34.
C) $45.
D) $53.
22. In Sonic Corporation's income statement, they report actual gross profit of $47,500 and the following variances:Materials price $ 420 F
Materials quantity 600 F
Labor price 420 U
Labor quantity 1,000 F
Overhead 900 F
Sonic would report gross profit at standard of
A) $41,660.
B) $42,500.
C) $45,000.
D) $48,340.
23. ToolTime has a standard of 2 hours of labor per unit, at $18 per hour. In producing 2,000 units, ToolTime used 3,850 hours of labor at a total cost of $70,455. ToolTime's labor price variance is
A) $1,155 U.
B) $1,200 U.
C) $1,555 F.
D) $2,895 F.
Explanation / Answer
20) D = (20,000 x $20/linear) + 15,000 = 415,000 21) D = (2 x $4/pound) + ($14/hour x 1.5) + (1.5 x $16) = 53 22) C The net effect of variances is =420 + 600 - 420 + 1000, 900 = 2,500 Since it is favorable, this means under standard rates, they should have incurred higher amounts, and so would have made less profits. But these costs savings have allowed a higher profit to be realized 23) A (Actual rate - standard rate) x actual hours incurred = (70,455/3850 - $18) x 3,850 = (18.3 - 18) x 3,850 = $1155 Unfavourable because actual rate > standard rate
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