Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5) Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.09 direct labor-hours. The direct

5)

Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.09 direct labor-hours. The direct labor rate is $7.60 per direct labor-hour. The production budget calls for producing 5,000 units in June and 5,500 units in July.

Required:

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

6)

Aguilera Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales $17,560,000
Net operating income $1,071,160
Average operating assets $4,300,000

The division's return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)

6.10%
24.91%
21.06%
3.10%
7)

Fabio Corporation is considering eliminating a department that has a contribution margin of $34,000 and $68,000 in fixed costs. Of the fixed costs, $17,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

a decrease of $34,000.

an increase of $34,000.

a decrease of $17,000.

an increase of $17,000.

8)

Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

Investment required in equipment $470,000
Annual cash inflows $77,000
Salvage value $0
Life of the investment 20 years
Required rate of return 14%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:
0.2 years
1.0 years
4.1 years
6.1 years
9)
The following materials standards have been established for a particular product:

Standard quantity per unit of output 2.9 grams
Standard price $13.00 per grams

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 1,700 grams
Actual cost of materials purchased $ 19,805
Actual materials used in production 1,200 grams
Actual output 350 units

The direct materials purchases variance is computed when the materials are purchased.

b.

What is the materials quantity variance for the month? (Input the amount a as positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, Jeffrey Knapp, Susan Mcgowan, John Sweeting, Leah Meng

12th Edition

0730382672, 9780730382676

More Books

Students also viewed these Accounting questions