31.

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

a.10,600

b.6,800

c.66,000

d.8,200

32.

Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a.$984,000

b.$468,000

c.$812,000

d.$688,000

33.

One reason not to depend solely on historical records to set standards is that there may be inefficiencies contained in past costs.

True

False

34.

Standard costs serve as a device for measuring efficiency.

True

False

35.

The standard cost is how much a product should cost to manufacture.

True

False

36.

The fact that workers are unable to meet a properly determined, direct labor standard is sufficient cause to change the standard.

True

False

37.

Standards are performance goals used to evaluate and control operations.

True

False

38.

The following data relate to direct labor costs for the current period:

Standard costs	7,500 hours at $11.70
Actual costs	6,000 hours at $12.00

What is the direct labor time variance?

a.$18,000 unfavorable

b.$17,550 favorable

c.$18,000 favorable

d.$17,550 unfavorable

39.

The following data relate to direct labor costs for the current period:

Standard costs	6,000 hours at $12.00
Actual costs	7,500 hours at $11.40

What is the direct labor rate variance?

a.$18,000 unfavorable

b.$4,500 favorable

c.$17,100 unfavorable

d.$3,600 favorable

40.

The following data relate to direct materials costs for February: Materials cost per yard: standard, $2.00; actual, $2.10 Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 Calculate the direct materials price variance.

a.$378.00 favorable

b.$1,795.50 favorable

c.$4,512.50 unfavorable

d.$378.00 unfavorable