19.

Figure 10-1.

Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum. It normally manufactures 7,500 airplanes. Materials and labor standards for making the airplanes are:

Direct Materials (1 sheet of aluminum @ $10.00)	$10.00
Direct Materials (other accessories @ $8.75)	8.75
Direct Labor (6 hours @ $7.00)	42.00

Refer to Figure 10-1. Compute the standard hours allowed for a volume of 10,000 airplanes.

a.60,000 hours

b.420,000 hours

c.70,000 hours

d.65,000 hours

22.

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Refer to Figure 10-3. Compute the materials price variance and the materials usage variance, respectively.

a.$9,000 F and $1,200 U

b.$9,300 U and $1,500 F

c.$6,800 F and $4,000 U

d.$6,800 U and $4,000 F

23.

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Refer to Figure 10-3. Calculate the labor rate variance and the labor efficiency variance, respectively.

a.$4,500 U and $3,000 U

b.$4,500 U and $3,000 F

c.$4,500 F and $3,000 U

d.$4,500 F and $3,000 F

24.

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Refer to Figure 10-3. Compute the total budget variances for materials and labor, respectively.

a.$2,800 F and $7,500 U

b.$2,800 U and $7,500 F

c.$2,800 F and $7,500 F

d.$2,800 U and $7,500 U

25.

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)	$240
Direct labor (10 hours @ $12)	$120
Total prime cost	$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Refer to Figure 10-3. Compute the costs of leather and direct labor that should have been incurred for the production of 125 boots.

a.$46,500 and $37,500

b.$37,200 and $20,000

c.$36,000 and $36,000

d.$30,000 and $15,000