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##### Six Accounting Questions - MCQs

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Question;Question 1 A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product. 10,000 pounds of direct material which cost $6.50 per pound were used in the production process. Compute the direct material quantity variance for August. Answers: a. $5,000 unfavorable. b. $12,000 unfavorable. c. $5,000 favorable. d. $12,000 favorable. e. $7,000 favorable. Question 2 Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A? Selected Answer: d.$30,000Answers: a.$12,500 b.$25,000 c. $20,000 d.$30,000 e.$35,000 Question 3 Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' total labor variance for August?Answers: a. $10,376 unfavorable. b. $2,104 unfavorable. c. $2,104 favorable. d. $12,480 unfavorable. e. $12,480 favorable. Question 4 Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August? Question 5 Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed overhead volume variance for March? Answers: a. $3,780 favorable. b. $18,020 unfavorable. c. $14,240 unfavorable. d. $3,780 unfavorable. e. $14,240 favorable. ? Question 6 A company's flexible budget for 12,000 units of production showed sales, $48,000, variable costs, $18,000, and fixed costs, $16,000. The operating income expected if the company produces and sells 16,000 units is: Answers: a. $2,667 b. $14,000 c. $18,667 d. $24,000 e. $35,000

Paper#40851 | Written in 18-Jul-2015

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