MULTIPLE CHOICE 9-74 Hillandale Company manufactures overalls. During the year,

Question

MULTIPLE CHOICE 9-74 Hillandale Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labor at a rate of $6.25 per hour. The materials and labor standards for manufacturing the overalls are as follows: $10 18 Direct materials (5 yards of denim $2 per yard) Direct labor (3 hours $6 per hour) It took Hillandale 600,000 yards at $1.95 per yard to make the 125,000 overalls. What is Hillandale's materials price variance? ??. $30,000 F b. $31,250 u Oc. $31,250F d. $30,000 u 13. MULTIPLE CHOICE 9-75 Hillandale Company manufactures overalls. During the year, it manufactured 125,000 overalls, using 2.9 hours of direct labor at a rate of $6.25 per hour. The materials and labor standards for manufacturing the overalls are as follows: Direct materials (5 yards of denim$2 per yard) Direct labor (3 hours $6 per hour) It took Hillandale 600,000 yards at $1.95 per yard to make the 125,000 overalls. What is Hillandale's materials usage variance? Oa. $50,000F $10 b. $50,000 u Oc. $48,750 u Od. $48,750 F 14. MULTIPLE CHOICE 10-46 Mason, Inc. produces leather purses. Mason has developed a static budget for the first quarter, based on 20,000 direct labor hours. During the quarter, the actual activity was 22,000 direct labor hours. Data for the first quarter are summarized as Static budget 20,000 hours $80,000 160,000 Actual costs 22,000 hours $87,000 174,000 Direct Materials Direct iabor Rent Total What is the flexible budget variance for the first quarter? Oa. $23,000 u Ob. $23,000 F c. None of these choices is correct. Od. $1,000F Oe. $1,000u

Explanation / Answer

12 Materials price variance=600000*(1.95-2)= $30000 F Option A is correct 13 Materials usage variance = 2*(600000-125000*5)= $50000 F 14 Flexible budget Direct materials 88000 =80000/20000*22000 Direct labor 176000 =160000/20000*22000 Rent 48000 Total 312000 Flexible budget variance=311000-312000 = $1000 F

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.