A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $36 and takes two machine hours to make and Product B has a unit contribution margin of $45 and takes three machine hours to make. If there are 1,000 machine hours available to manufacture a product, income will be: Select one: a. $3,000 less if Product A is made. b. $3,000 more if Product A is made. c. $3,000 more if Product B is made. d. The same if either product is made. A pottery company produced 2,000 clay pots during the month of May. The following information is available concerning standards and actual during that time period. Direct Materials: Standard Cost Per Unit Total Actual Cost $ 11,200 Standard Total Cost Allowed For Units Produced 12,000 Quantity Variance Direct Labor: Standard Quantity of Hours Allowed Per Unit Produced . Standard Cost Per Hour 24.00 Actual Cost Per Hour $ 24.50 Efficiency Variance 672 What is the total actual cost of direct labor? Select one: a. $23,200. b. $23,814. c. $24,000. d. $24,672 A pottery company produced 2,000 clay pots during the month of May. The following information is available concerning standards and actual during that time period. Direct Materials: Standard Cost Per Unit $ 6.00 Total Actual Cost $ 11,200 Standard Total Cost Allowed For Units Produced $ 12,000 12.000 I Quantity Variance 240 U Direct Labor: Standard Quantity of Hours Allowed Per Unit Produced 0.50 Standard Cost Per Hour 24.00 Actual Cost Per Hour 24.50 Efficiency Variance 672 F What is the direct materials price variance? Select one: a. $ 800 U. b. $ 800 F. c. S 560 u. d. $1,040 F. A company developed the following standards per unit for its product: 2 pounds of direct materials at $6 per pound. Last month, 1,000 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was: Select one: O a. $ 150 F O b. $5,700 F. c. $ 300 F O d. $ 300 U. A pottery company produced 2,000 clay pots during the month of May. The following information is available concerning standards and actual during that time period. Direct Materials: Standard Cost Per Unit $ 6.00 Total Actual Cost $ 11,200 Standard Total Cost Allowed For Units Produced $ 12,000 Quantity Variance 240 U Direct Labor: Standard Quantity of Hours Allowed Per Unit Produced 0.50 Standard Cost Per Hour 24.00 Actual Cost Per Hour 24.50 Efficiency Variance 672 F What is the standard direct material amount allowed per pot? Select one: a. 1.88 pounds. b. 3.00 pounds. c. 1.00 pound d. 4.00 pounds. Management by exception: Select one: a. Means that all differences will be investigated. O b. Means that significant differences will be investigated. c. Causes managers to be buried under voluminous paperwork. In incremental analysis: Select one: O a. Both costs and revenues may be analyzed. b. Only costs are analyzed. O c. Only revenues are analyzed. O d. Both costs and revenues that stay the same between alternate courses of action will be analyzed. A segment has the following data. Sales 420,000 Variable Expenses 180,000 Fixed Expenses 330,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? Select one: a. Increase of $240,000. b. Decrease of $240,000. c. Decrease of $330,000. d. Increase of $330,000. Which of the following is not considered an advantage of using standard costs? Select one: O a. Standard costs can be useful in setting prices for finished goods. O b. Standard costs can be used as a means of finding fault with performance. O c. Standard costs can make employees "cost conscious". O d. Standard costs can reduce clerical costs
