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2. 3 sugar Corporation collected the following actual results for the current month Actual amounts: Units produced Direct labor cost (5,000 hours) 5.300 $25,500 Budgeted

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sugar Corporation collected the following actual results for the current month Actual amounts: Units produced Direct labor cost (5,000 hours) 5.300 $25,500 Budgeted production and standard costs were: Budgeted production 5,400 Direct labor 3 hrs./unit at $8.00/hr. What is the direct labor efficiency variance? O A $87 200 favorable O B. $87 200 unfavorable O C. $55,590 favorable OD. $55,590 unfavorable Cost Allocation Rate P&A Inc manufactures console tables and uses an activity - based costing system to allocate all manufacturing conversion costs. Each console table consists $260 in direct materials and requires 5 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Activity Allocation Base Materials handling Number of parts 51.00 per part Machining $3.90 per machine hour Assembling Number of parts $100 per part Packaging $4.00 per finished unit Which of the following is the total manufacturing cost per console table? Machine hours Number of finished units OA $63.50 OB. 5319.50 OC. 578.00 OD. $32350 Lusung system to allocate all manufacturing conversion costs. Each console table consists of 20 separate parts totaling achine time to produce. The company incurs no direct labor costs. Additional information follows: Cost Allocation Rate $1.00 per part $3.90 per machine hour $1.00 per part ed units 54.00 per finished unit ost per console table? Rainbow Brothers Inc. has two product lines: Rain coats and Snow boats. The following is data on its Income statement for the most recent year. Total Rain Coats Snow Boots Sales revenue $530,000 $390,000 $140.000 Variable expenses 385,000 265,000 120,000 Contribution margin 145,000 125.000 20,000 Fleed expenses 77,000 38,500 38,500 Operating income (loss) $68,000 586,500 S(18,500) 14 526,000 of fixed costs will be eliminated by discontinuing the Snow Boots line how will operating income be affected? O A. Increase $77,000 B. Increase $6,000 C. Decrease 547,500 OD. Increase $145,000 has two product lines. Rain coats and Snow boots. The following is data on its Income statement for the most recent year Total Rain Coats Snow Boots $530,000 $390,000 $140,000 385,000 265,000 120.000 145,000 125.000 20,000 77.000 38.500 38,500 58) $68,000 586,500 S(18,500) ests will be eliminated by discontinuing the Snow Boots line, how will operating income be affected? 000 000 1500 5,000

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