Question
Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $440,000 $590,000
Fallow Corporation has two separate profit centers. The following information is available for the most recent year: |
West Division | East Division | |
Sales (net) | $440,000 | $590,000 |
Salary expense | 50,000 | 64,000 |
Cost of goods sold | 152,000 | 271,000 |
The West Division occupies 11,000 square feet in the plant. The East Division occupies 6,600 square feet. Rent, which was $ 88,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division. |
$222,000.
$166,000.
$183,000.
$168,000.
$167,000.
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Summerlin Company budgeted 5,400 pounds of material costing $6.00 per pound to produce 2,100 units. The company actually used 5,900 pounds that cost $6.10 per pound to produce 2,100 units. What is the direct materials price variance? |
$3,000 unfavorable.
$540 unfavorable.
$590 unfavorable.
$3,050 unfavorable.
$3,590 unfavorable.
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Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: |
Direct materials standard (7 kg. @ $2.40/kg.) | $16.80 per finished unit |
Actual cost of materials purchased | $402,500 |
Actual direct materials purchased and used | 158,000 kg. |
$23,300 unfavorable.
$40,800 favorable.
$23,300 favorable.
$17,500 unfavorable.
$40,800 unfavorable.
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