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39. The following company information is available: Direct materials used for production Standard quantity for units produced Standard cost per gallon of direct material Actual

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39. The following company information is available: Direct materials used for production Standard quantity for units produced Standard cost per gallon of direct material Actual cost per gallon of direct material 36,000 gallons 34,400 gallons $6.00 $8.10 The direct materials quantity variance is: a) $10,000 unfavorable b) $13,200 unfavorable c) $13,200 favorable d) $3,600 unfavorable e) $9,600 unfavorable 40. Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year White Division Sales (net) Salary expense Cost of goods sold Grey Division $400,000 48,000 159,000 $200,000 28,000 100,000 The White Division occupies 20,000 square feet in the plant. The Grey Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Gross profit for the White and Grey Divisions is White Grey a) $72,000 $193,000 b) $172,000 $352,000 c) $100,000 $241,000 d) $52,000 $163,000 e) $72,000 $163,000 41. Bartels Corp. produces woodcarvings. it takes two hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels labor cost variance for August? a) $10,376 unfavorable b) $2,104 unfavorable c) $2,104 favorable d) $12,480 unfavorable e) $12,480 favorable Direct and indirect costs are considered to be under what classification? a) Behavior b) Function c) Traceability d) Relevance e) Controllability 42

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