Question
Ferguson Inc. has provided the following budgeted data for the current month: Budgeted production units 2,500 units Standard material per unit 1.8 square yards Standard
Ferguson Inc. has provided the following budgeted data for the current month:
Budgeted production units | 2,500 units |
Standard material per unit | 1.8 square yards |
Standard price per square yards | $5.60 |
Actual production data is as follows:
Actual production units | 2,700 units |
Actual material used per unit | 1.5 square yards |
Actual price per square yards | $5.80 |
Determine the direct material cost variance.
Group of answer choices
A. -$810 favorable
B. -$810 favorable
C. $3,726 unfavorable
D. -$3,726 favorable
Rangoon Inc. used 12,000 direct labor hours in its production process at an actual rate of $16.50 per hour and produced 15,000 units of product. The planned production for the period was 17,000 units. The standard for direct labor hours was 0.7 hours per unit of production and the standard rate was $18.00 per hour.
Compute the direct labor rate variance.
Group of answer choices
A. $9,000 unfavorable
B. -$18,000 favorable
C. -$27,000 favorable
D. $18,000 unfavorable
Zillows investment turnover is 80%. This means:
Group of answer choices
A. For every dollar invested, operating income earned is $80.
B. For every dollar of invested assets, operating income earned is $0.80.
C. $0.80 of profit is earned from each dollar of sales.
D. The amount of sales generated by each dollar of invested asset is $0.80.
Zillows return on investment is 16%. This means:
Group of answer choices
A. $0.16 of revenue is generated from every dollar of asset.
B. Each dollar of sales renders $0.16 of income.
C. For every dollar invested, operating income is $16.
D. For every dollar invested, operating income is $0.16.
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