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1. During June, Jones Company incurs 1,900 hours of direct labor at an hourly cost of $9.75 in producing 1,000 units of its finished product.

1. During June, Jones Company incurs 1,900 hours of direct labor at an hourly cost of $9.75 in producing 1,000 units of its finished product. Jones' standard labor cost per unit of output is $19 (2 hours x $9.50). Instructions Compute the total, price, and quantity labor variances for Jones Company for June. 2. Manufacturing overhead data for the production of Product Z by Zark Company are as follows. Overhead incurred for 86,000 actual direct labor hours worked. $435,000 Overhead rate (Variable $3.00; fixed $2,00) at normal capacity of 90,000 direct labor hours. $5.00 Standard hours allowed for work done. 86,000 > Instructions Compute the controllable and volume overhead variances. 3. The standard cost of Item 285 manufactured by Moon Company includes 3 pounds of direct materials at $6.00 per pound. During May, 60,000 pounds of direct materials are purchased at a cost of $5.55 per pound, and all of the direct materials are used to produce 19,000 units of Item 285. Instructions (a) Compute the materials price and quantity variances. (b) Journalize the purchase of the materials and the issuance of the materials, assuming a standard cost system is used. 4. Triangle, Inc. produces several types of fountains. An outside supplier has offered to produce the commercial Fountain for Triangle for $640 each. Triangle needs 1,000 fountains annually. Triangle has provided the following unit costs for its commercial fountains: Direct Materials $150 Direct labor 140 Variable overhead 100 Fixed overhead (30% avoidable) 200 > Instructions Prepare an incremental analysis which shows the effect of the make-or-buy decision. 5. Duko Company manufactures deluxe commericial coffee makers. For the first eight months of 2012, the company reported the following operating results while operating at 80% of plant capacity: > Sales (600,000 units) $108,000,000 Cost of Goods sold 64,800,000 Gross Profit 43,200,000 Operating Expenses 24,000,000 Net Income 19,200,000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In October, Duko Company receives a special order for 30,000 machines at $140 each from a major coffee shop franchise. Acceptance of the order would result in $12,000 of shipping costs but no increase in fixed expenses. Instructions (a) Prepare an incremental analysis for the special order. (b) Should Duko Company accept the special order? Justify your

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