Marian Corporation has two separate divisions that operate as profit centers. Th
ID: 2485923 • Letter: M
Question
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
The Black Division occupies 28,000 square feet in the plant. The Navy Division occupies 38,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $58,000. Compute gross profit for the Black and Navy Divisions, respectively.
$144,000; $257,000.
$144,000; $219,000.
$320,000; $313,000.
$116,000; $219,000.
$464,000; $424,000.
A department store has budgeted sales of 12,500 men's suits in September. Management wants to have 6,500 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,500 suits. What is the dollar amount of the purchase of suits if each suit has a cost of $80.
$840,000.
$1,000,000.
$1,360,000.
$1,160,000.
$1,520,000.
Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.
$4,740 unfavorable.
$5,600 unfavorable.
$5,600 favorable.
$15,050 favorable.
$4,740 favorable.
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
Black Division Navy Division Sales (net) $500,000 $480,000 Salary expense 36,000 56,000 Cost of goods sold 180,000 167,000
The Black Division occupies 28,000 square feet in the plant. The Navy Division occupies 38,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $58,000. Compute gross profit for the Black and Navy Divisions, respectively.
$144,000; $257,000.
$144,000; $219,000.
$320,000; $313,000.
$116,000; $219,000.
$464,000; $424,000.
A department store has budgeted sales of 12,500 men's suits in September. Management wants to have 6,500 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,500 suits. What is the dollar amount of the purchase of suits if each suit has a cost of $80.
$840,000.
$1,000,000.
$1,360,000.
$1,160,000.
$1,520,000.
Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period.
Explanation / Answer
1.
Gross Profit= Sales - Cost of goods sold
Black Division:
=$500,000-$180,000=$320,000
Navy Division:
=$480,000-$167,000=$313,000
Anwer is $320,000; $313,000.
Hence option 3 correct
-------------------------------------------------------------------------------------------------------------------------------
2.
Budgeted Sales 12,500 units
Add: Ending Inventory 6,500
---------------------
19,000
Less: Beginning Inventory (4,500)
---------------------
Require Purchases 14,500 units
Cost per Unit $80
Cost of Purchasses $1,160,000
Option 4 correct
----------------------------------------------------------------------------------------------------------------------
3.
direct labor rate variance=( Standard rate-Actual rate) x Actual hrs
=(7-7.40) x 11,850
= -0.40 x 11,850
=- $4,740 Unfavorable
Option 1 correct
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.