Be sure to READ each question AND be sure you have provided all of the information required. Be sure to denote where your answer is located - plenty of white space is provided. In addition, to ensure that you receive maximum credit (including partial credit), be sure to SHOW ALL WORK, including any work performed to arrive at multiple choice answers. Odin Corporation makes a product that is very popular in the summer. Thus sales peak in June each year leading to higher production levels in April and May as shown below: APRIL MAY JUNE TOTAL Direct Materials Budget 60,000 70,000 40,000 170,000 Each unit needs two brackets. The brackets can be difficult to get at times, so the company has determined that it must have 20% of the required brackets at the start of each period. The Company had 24,000 brackets in inventory at the beginning of April. Odin has determined it needs 18,000 springs at the end of June. 1) How many gages are needed to be purchased to meet the production schedule for the quarter? a) 170,000 b) 334,000 c) 340,000 d) 364,000 Use the following information to complete Questions 2 and 3. Buffett Enterprises produces a product called Slugger. The direct materials and direct labor standards for one bottle of Slugger are given below: Standard Cost Standard Quantity and Hours 7.2 ounces 0.4 hours Standard Price and Rate $2.50 per ounce $10.00 per hour Direct Materials Direct Labor $18.00 $4.00 During a recent month the following activity was recorded: Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce. . All of the material was used to produce 2,500 bottles of Slugger Nine hundred hours (900) of direct labor time were recorded at a total labor cost of $10,800 2) What were the Material Quantity and Material Price Variances for the Month? 3) What was the Labor Spending Variance for the month? Treyflux, Inc, manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Treyflux for $80 per unit. To evaluate this offer, Treyflux, Inc. has gathered the following information relating to its own cost of producing the thermostat internally: Per Unit S24 32 4 Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead, Tracable Allocated Fixed Manufacturing Overhead, Common Total Cost 15,000 Units Per Year $360,000 480,000 60,000 300,000 600.000 $1,800,000 20* 40 $120 *40% supervisory salaries; 60% depreciation of special equipment (no resale value) 4. How much would it cost Treyflux to manufacture the product in house? a) $120 b) $ 68 c) $ 80 d) $100 5. Suppose the thermostats were purchased, Treyflux, Inc. could use the freed capacity to launch a new product. The segment margin of the new product would be $260,000 per year. Should Treyflux, Inc. accept the offer to buy the thermostats from the outside supplier for $80 each