Denominator hours for May Actual hours worked during May Standard hours allowed for May Flexible budget fixed overhead cost Actual fixed overhead costs for May 23,000 20,400 15,200 $ 69,000 $ 73,600 What is the fixed overhead spending (budget) variance for May? $5,200 unfavorable. 0 $4,600 unfavorable. $5,200 favorable. 0 $2,600 unfavorable. TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. Task Master has established the following standards for the prime costs of one unit of product. Direct Materials Direct Labor Standard Quantity 7 pounds 35 hour Standard Price $ 1.50 per pound $ 9.00 per hour Standard Cost $10.50 3.15 $13.65 During November, TaskMaster purchased 140,000 pounds of direct materials at a total cost of $238,000. The total factory wages for November were $50,000, 80% of which were for direct labor. Task Master manufactured 18,000 units of product during November using 118,000 pounds of direct materials and 4,000 direct labor hours. What is the direct materials efficiency (quantity) variance for November? $23,600. $28.000 $21,000. $12,000. Atkinson, Inc., manufactures products A, B, and from a common process. Joint costs were $141.900. Additional information is as follows: Product Units Produced 5,700 6,950 3.475 16.125 Sales Value at Split-Off $ 38.200 60.465 41.700 $ 140.365 If Processed Further Sales Value $ 52.450 77,840 52,125 $ 182,415 Additional Costs $ 3.800 10,425 13.900 $ 28.125 Assuming that joint production costs are allocated using the physical quantities method (units produced) what were the costs allocated to Product A? O $47160 O $50,160. $49,160 $53,160 Task Master Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. Task Master has established the following standards for the prime costs of one unit of product. Direct Materials Direct Labor Standard Quantity 9 pounds 35 hour Standard Price $ 1.80 per pound $10.00 per hour Standard Cost $16.20 3.50 $19.70 During November, Task Master purchased 189,000 pounds of direct materials at a total cost of $378,000. The total factory wages for November were $46,000. 80% of which were for direct labor. TaskMaster manufactured 18,000 units of product during November using 155,000 pounds of direct materials and 5,000 direct labor hours. Task Master computes direct material variances at the time of purchase. What is the direct materials price variance for November? $12.600. O $31,000. $48.600. $37,800. Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,900 units of Basic Product and 1,500 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $99,085. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1. Activity 2. and General Factory -with estimated overhead costs and expected activity as follows: Activity Cost Pool Activity 1 Activity 2 General Factory Total Estimated Overheed Costs $30,600 17,475 51,010 $99.085 Expected Activity Deluxe Basic Product Product 1,000 600 1,600 400 570 900 Total 1,600 2,000 1,470 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor hours.) The predetermined overhead rate (le, activity rate) for Activity 2 under the activity-based costing system is closest to: O $67.40. $9.20 O $8.74 $49.54
