1 Holo Company reported the following financial numbers for one of its divisions for the year average total assets of $6,600,000 sales of $7,775,000 cost of goods sold of $4,025,000 and operating expenses of $1,467,000 Compute the division's return on investment 18 9 27 7 34 6 32 0 29 36 2 A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch For the current period, unprocessed wheat was purchased for $260,000, and the following quantities of product and sales revenues were produced Product Pounds Price per Pound Feed 150,000 $ 2 20 Flour 44,000 2 60 Starch 14,000 7 00 How much of the $260,000 cost should be allocated to feed if the value basis is used $330,000 $158,600 $200,000 $260,000 $0 3 A company uses the following standard costs to produce a single unit of output Direct materials 8 pounds at $1 2 per pound $ 9 60 Direct labor 0 20 hour at $8 00 per hour $ 1 60 Manufacturing overhead 0 20 hour at $3 10 per hour $ 62 During the latest month, the company purchased and used 78,000 pounds of direct materials at a price of $1 40 per pound to produce 10,000 units of output Direct labor costs for the month totaled $13,575 based on 1,810 direct labor hours worked Variable manufacturing overhead costs incurred totaled $3,200 and fixed manufacturing overhead incurred was $15,000 Based on this information, the direct materials quantity variance for the month was $2,400 unfavorable $2,000 favorable $2,400 favorable $15,600 favorable $15,600 unfavorable 4 Fletcher Company collected the following data regarding production of one of its products Compute the total direct materials cost variance Direct materials standard (4 lbs $6 lb ) $ 24 per finished unit Actual direct materials used 82,000 lbs Actual finished units produced 20,000 units Actual cost of direct materials used $ 483,920 $3,920 favorable $12,000 unfavorable $3,920 unfavorable $12,000 favorable $8,080 favorable

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1. Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $6,600,000; sales of $7,775,000; cost

1. Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $6,600,000; sales of $7,775,000; cost of goods sold of $4,025,000; and operating expenses of $1,467,000. Compute the division's return on investment:

18.9%
27.7%.
34.6%.
32.0%.
29.36%.

2. A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $260,000, and the following quantities of product and sales revenues were produced.

Product	Pounds	Price per Pound
Feed	150,000	$	2.20
Flour	44,000		2.60
Starch	14,000		7.00

How much of the $260,000 cost should be allocated to feed if the value basis is used?

$330,000.
$158,600.
$200,000.
$260,000.
$0.

3. A company uses the following standard costs to produce a single unit of output.


Direct materials	8 pounds at $1.2 per pound	=	$	9.60
Direct labor	0.20 hour at $8.00 per hour	=	$	1.60
Manufacturing overhead	0.20 hour at $3.10 per hour	=	$	.62

During the latest month, the company purchased and used 78,000 pounds of direct materials at a price of $1.40 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $13,575 based on 1,810 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $3,200 and fixed manufacturing overhead incurred was $15,000. Based on this information, the direct materials quantity variance for the month was:

$2,400 unfavorable
$2,000 favorable
$2,400 favorable
$15,600 favorable
$15,600 unfavorable

4. Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials cost variance.


Direct materials standard (4 lbs. @ $6/lb.)	$	24	per finished unit
Actual direct materials used		82,000	lbs.
Actual finished units produced		20,000	units
Actual cost of direct materials used	$	483,920