1-The Lopez Company uses standard costing in its manufacturing plant for auto parts. , the budgeted output level for the year is 4,000 units ,The standard machine-hours allowed per unit of output is 6 machine hours. the budgeted Variable manufacturing overhead rate is $8per hour. The actual output produced was 4,400 units. The actual Variable manufacturing overhead costs were $245,000. The actual machine hours were 28,400.

The efficiency variance for V.MOH is :

Select one:

a. 17,800 unfavorable

b. 16,000 unfavorable

c. 17,800 favorable

d. 16,000 favorable

e. never a variance

2-In producing product ZZ, 14,800 direct labor hours were used at a rate of $8.20 per hour. The standard was 15,000 hours at $8.00 per hour. Based on these data, the direct labor has :

Select one:

a. efficiency variance is $1,600 unfavorable

b. price variance is $3,000 favorable

c. efficiency variance is $1,600 favorable

d. price variance is $3,000 unfavorable.

3-Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct Materials $15,000

Direct Labor 6,500

Variable Overhead 16,000

Fixed Overhead 11,000

f Fornelli, Inc. can purchase the component part externally for $44,000 and only $6,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Select one:

a. Make and save $2,500

b. buy and save $2,500

c. Make and save $500

d. Buy and save $500

e. Buy and save $6,500