1.

1 point

$21,000

$210,000

$84,000

$8400

$82,500

None of the above.

2. Use information from Question No. 1 to calculate budgeted beginning inventory (in units) for the month of April, on the direct material budget. Choose the correct answer.

1 point

8,100 units

20,250 units

22,125 units

73,750 units

8,850 units

3. The standards for product M66 needs 2.8 kilograms of a raw material that costs $13.50 per pound. Last month, 3,700 pounds of the raw material were purchased for $51,820. A total of 1150 units of the finished goods M66 were manufactured during the current month.. A total of 2,990 kilograms of the raw material were used to produce the finished goods. Calculate the value of Material Price Variance for the month. Show calculations clearly. [No need write the formula].

3 points

Your answer

4. Use information from Question No. 3 to calculate the Material Quantity variance for the month. Choose the correct answer.

1 point

$6480 U

$1850 U

$3105 F

$1495 U

None of the above

5.

1 point

$ 6050 F

$6050 U

$440 F

$440 U

None of the above.

6. Material quantity variance is used to evaluate the performance of the purchasing manager.

1 point

True

False

7.

1 point

$5590 F

$5590 U

$195495 U

$195495 F

$58240 F

$58240 U

8.ABC company can take loan of maximum $15,000 each month from it's bank. In the current month of September, total budgeted cash the company will collect from it's customer is $12,200. ABC company estimates that it will buy RM worth $3,500, pay it's direct labours a total salary of $5,000 and MOH and selling $ admin cost of $2,000 will also have to be paid for. If ABC Company plans to maintain a minimum cash balance of $3,000 for the month of October, how much loan the company should take in the month of September? Assume a beginning cash balance of $3,100 for the month of September

1 point

$6200

$3000

$10,500

$4800

The company will not have to take any loan.

Insufficient information provided.

1. Schuh Corporation manufactures product AB1 which requires a raw material called XZ2. In order to make one unit of AB1, 2.5 kgs of raw materials are used. Budgeted production of AB1 for the first 5 months are as follows : January.......... 28,000 units February ....27,500 units March............28,000 units April.......... ..29,500 units May.......... ...27,000 units The company wants to maintain an ending inventory equal to 30% of the following months raw material needs for production. Raw material costs $10 per unit. Schuh Corporation now wants to make a Direct Material Budget. What should be the dollar value of the ending inventory for the month of February, on the direct material budget? $21,000 O $210,000 $84,000 $8400 $82,500 None of the above. 5. 1 point 5. The following labor standards have been established for a particular product: Standard labor-hours per unit of output.... 2.2 hours Standard labor rate.......... ..... $13.75 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked...... 4,400 hours Actual total labor cost..... $60,940 Actual output ........... 2,200 units What is the labour rate variance for the month? $ 6050 F $6050 U $440 F $440 U None of the above. 7. The following related to standards for variable manufacturing overhead Standard hours per unit of output ....... 7.2 hours Standard variable overhead rate.......$21.50 per hour The following information relates to current month's operation. Actual hours......... 9,100 hours Actual total variable MOH cost ...... $137,250 Actual output.............1,300 output What is the variable MOH efficiency variance for the month? $5590 F $5590 U $195495 U $195495 F $58240 F $58240 U