2018-2020 : (25 ) Q1: Choose the right answers 1. Year 1 financial data for the Gross Company is as follows: Sales $5,000,000 Direct materials 850,000 Direct manufacturing labor 1.700,000 Variable manufacturing overhead 400000 Fixed manufacturing overhead 750000 Variable SG&A 150,000 Fixed SG&A 250000 Under the absorption method, Year 1 Cost of Goods sold will be $2,550,000 b $2,950,000 $3,100,000 a $3,700.000 c d 2. A company needs to sell 10,000 units Fits only product in order to break even. Fixed costs are$110,000, and the per unit selling price and variable costs are $20 and $9, respectively. If total sales are$220,000, the company's margin of safety will be equal to: $0 b $20,000 $110,000 $200,000 a d C 3. Sturdy Manufacturing Co. assembled the following cost data for job order #23 Direct manufacturing labor Indirect manufacturing labor Equipment depreciation Other indirect manufacturing costs Direct materials Indirect materials Manufacturing overhead overapplied $80,000 12,000 1000 1,500 95000 4000 2000 What are the total manufacturing costs for job order #23 if the company uses normal job-order costing? $191,500 b $ 193,500 $ 194,500 d $195,500 5 11 , - 2019-2020 4. Superior Industries sales budget shows quarterly sales for the next year as follows: Quarter 1- 10,000: Quarter 2-8,000, Quarter 3-12,000; Quarter 4-14,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 20% of the next quarter's sales Budgeted production for the second quarter of next year would be: a 7,200 units b 8,800 units c 12,000 units d 10.400 units 5. Basix Inc. calculates direct manufacturing labor variances and has the following information: Actual hours worked Standard hours 200 250 Actual rate per hour $12 Standard rate per hour $10 Given the information above, which of the following is correct regarding direct manufacturing labor variances? a b The price and efficiency variances are favorable The price and efficiency variances are unfavorable The price variance is favorable, while the efficiency variance is unfavorable The price variance is unfavorable, while the efficiency variance is favorable C d 92: ProChem, Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August 2017: Variable $35,000 36,000 Actual costs incurred Costs allocated to products Flexible budget Actual input x budgeted rate Fixed $16,500 15,200 16,000 31,500 Fill in the blanks. Use F for favorable and U for unfavorable: Variable $ Fixed (1) Spending variance (2) Efficiency variance (3) Production-volume variance 6 11
