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Six Accounting Questions - MCQs

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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.;$30,000;Answers: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#80193 | Written in 18-Jul-2015

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