Acct 2302

The following materials standards have been established for a particular product: Standard quantity per unit of output. Standard price 2.6 meters $10.55 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased Actual cost of materials purchased .$59,400 Actual materials used in production.5,600 meters Actual outpt2,200 units 6,000 meters What is the materials quantity variance for the month? A.$4,220 U B. $1,188 F C. $1,266 F D. $3,960 U 8. A customer has requested that Gamba Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit. While the product would be modified slightly for the special order, product Q41's normal unit product cost is $21.40: Direct materials Direct labor $5.70 3.40 5.80 6.50 $2140 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing $7.00 per unit and that would require an investment of $15,000 in special molds that would have no salvage value This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase decrease) by A. ($5,700) B. ($21,300) C. ($25,200) D. $10,800 9. A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n): A. Uncontrollable cost. B. Incremental cost. C. Opportunity cost. D. Out-of-pocket cost E. Sunk cost