Question
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.) |
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: |
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.) |
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