Question
Danny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9
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Danny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Danny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. What is Danny's labor rate variance for August?
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$1,188Favorable
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$1,188 Unfavorable
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$2,160 Favorable
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$2,160Unfavorable
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Emily Corporation's cost of goods manufactured for the just completed month was $146,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. How much was the cost of goods sold?
A. $181,000B. $146,000C. $144,000D. $139,000
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If manufacturing overhead is under applied, then:
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actual manufacturing overhead cost is less than estimated manufacturing overhead cost.
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the amount of manufacturing overhead cost applied to Work in Process is less than the actual
manufacturing overhead cost incurred.
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the predetermined overhead rate is too high.
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the Manufacturing Overhead account will have a credit balance at the end of the year.
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Selling used equipment, for cash, at book value will:
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Increaseworkingcapital
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Decrease working capital
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Decrease debt-to-equity ratio
-
Increasenetincome
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A companys current ratio is greater than 1.0. Purchasing raw materials for cash will:
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Notchangethecurrentratio
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Increase the current ratio
-
Decrease the current ratio
-
Increasenetworkingcapital
-
A companys DSO (Days Sales Outstanding) would expect to improve as a result of
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The terms of sale changed from net 30 to net 45 days from invoice date
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A drop is sales price
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An increase in cash sales in proportion to credit sales
Danny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Danny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. What is Danny's labor rate variance for August?
-
$1,188Favorable
-
$1,188 Unfavorable
-
$2,160 Favorable
-
$2,160Unfavorable
Emily Corporation's cost of goods manufactured for the just completed month was $146,000. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000. How much was the cost of goods sold?
A. $181,000B. $146,000C. $144,000D. $139,000
If manufacturing overhead is under applied, then:
-
actual manufacturing overhead cost is less than estimated manufacturing overhead cost.
-
the amount of manufacturing overhead cost applied to Work in Process is less than the actual
manufacturing overhead cost incurred.
-
the predetermined overhead rate is too high.
-
the Manufacturing Overhead account will have a credit balance at the end of the year.
Selling used equipment, for cash, at book value will:
-
Increaseworkingcapital
-
Decrease working capital
-
Decrease debt-to-equity ratio
-
Increasenetincome
A companys current ratio is greater than 1.0. Purchasing raw materials for cash will:
-
Notchangethecurrentratio
-
Increase the current ratio
-
Decrease the current ratio
-
Increasenetworkingcapital
A companys DSO (Days Sales Outstanding) would expect to improve as a result of
-
The terms of sale changed from net 30 to net 45 days from invoice date
-
A drop is sales price
-
An increase in cash sales in proportion to credit sales
D. A change in the credit policy to shorten the period for cash discounts
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