$567,000. $945,000. $27,000. $702,000. $405,000. Wren Pork Company uses the rela

Question

$567,000.

$945,000.

$27,000.

$702,000.

$405,000.

Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:

$0.

$10,184.

$12,875.

$15,550.

$62,200.

The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is:

$30,000 unfavorable.

$30,000 favorable.

$18,000 unfavorable.

$48,000 favorable.

$48,000 unfavorable.

Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 2's contribution to overhead in dollars is:
Dept.
Sales Cost of
Goods Sold Direct
Expenses Indirect
Expenses 1 $2,700,000 $1,890,000 $270,000 $216,000 2 1,080,000 405,000 108,000 270,000 3 1,890,000 810,000 405,000 54,000

$567,000.

$945,000.

$27,000.

$702,000.

$405,000.

Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:

Product Pounds Price/lb. Loin chops 3,640 $8.20 Ground 11,600 3.60 Ribs 4,960 7.15 Bacon 7,280 5.10

The total joint cost for the current period was $62,200. How much of this cost should Wren Pork allocate to Loin chops?

$0.

$10,184.

$12,875.

$15,550.

$62,200.

The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is:

Explanation / Answer

   1 Ultimo Co Details of Dept 2. Amt $ Sales          1,080,000 Less Cost of Goods sold          (405,000) Less Direct Expenses          (108,000) Dpartmental Contribution to Overhead=            567,000 So correct option is $567,000    2 Product Pounds Price/lb. Value   % value Loin chops 3640 $8.20             29,848 20.7% Ground 11,600 3.6             41,760 29.0% Ribs 4960 7.15             35,464 24.6% Bacon 7280 5.1             37,128 25.7% Total          144,200 Joint cost =62200 Allocation to Loin chops=62200*20.7%=              12,875 So answer is $12,875    3 Direct Labor rate variance=Actual Labor Hrs used(Actual Labor rate-Std Labor Rate) =48000*(16-15)=              48,000 Unfavorable So Answer is 48,000 unfavorable.

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