Final Exam - T1/2021 i Saved 13 Corso Company has 11,600 units of its product that were produced at a cost of $174,000. The units were damaged in a rainstorm. Corso can sell the units as scrap for $23,200, or it can rework the units at a cost of $42,800 and then sell them for $56,300 (a) Prepare a scrap or rework analysis of income effects. (b) Should Corso sell the units as scrap or rework them and then sell them? 8 01:26:51 (a) Scrap or Rework Analysis Scrap Rework Sales Additional processing costs Total $ $ (b) The company should: Mc Graw 245200 244834315_19376..jpgExam - T1/2021 i Saved 4 Fastra Company produces a single product and has capacity to produce 145,000 units per month. Costs to produce its current monthly sales of 116,000 units follow. The normal selling price of the product is $138 per unit. A new customer offers to purchase 29,000 units for $63.90 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Costs at 116, 000 01:22:45 Per Unit Units Direct materials $ 12.50 $ 1, 450, 000 Direct labor 15.00 1, 740, 000 Variable overhead 13.00 1, 508 , 000 Fixed overhead 17.50 2, 030, 000 Fixed general and administrative 13.00 1,508 , 000 Totals $ 71.00 $ 8,236,000 (a) Compute the income from the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Should the company accept the special offer? Should the company accept the special offer? Final Exam - T1/2021 1 Saved [The following information applies to the questions displayed below.] 11 Proto Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 6 pounds at $8 per pound $ 48 Part 5 of 6 Direct labor: 4 hours at $17 per hour 68 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 132 8 01:27:10 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 72,000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960. What is the variable overhead rate variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Variable overhead rate variance Mc Graw Hill[The following information applies to the questions displayed below.] 9 Proto Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 6 pounds at $8 per pound $ 48 Part 3 of 6 Direct labor: 4 hours at $17 per hour 68 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 132 01:27:34 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 72,000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960. What is the labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Labor rate variance Mc Graw HillFinal Exam - T1/2021 i Saved Complete this question by entering your answers in the tabs below. 14 Required A Required B Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.) 01:26:34 SPECIAL OFFER ANALYSIS Per Unit Total Variable costs Contribution margin 0.00 Fixed costs Fixed overhead Fixed general and administrative Income $ 0.00 $ Required B > Mc Graw Hill 244834315_19376...jpg 759 19391....ipg 245168558_58215...jpg 245039844_17305...jpgTotals $ 71.00 $ 8,236, 000 14 (a) Compute the income from the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. 8 01:26:27 Required A Required B Should the company accept the special offer? Should the company accept the special offer? Graw Hill 244834315_19376..jpg 245. 245168558_58215....jpg 245039844_17305....jpg 245119164_25197...jpg 245212759_19391...jpg 16'C CARBy AgeFinal Exam - 11/2021 i Saved [The following information applies to the questions displayed below.] 10 Proto Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Part 4 of 6 Direct materials: 6 pounds at $8 per pound 48 Direct labor: 4 hours at $17 per hour 68 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 132 01:27:21 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 72,000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960. What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Labor efficiency variance McFinal Exam - 11/2021 i Saved [The following information applies to the questions displayed below.] 12 Proto Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 6 pounds at $8 per pound $ 48 Part 6 of 6 Direct labor: 4 hours at $17 per hour 68 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 132 01:26:59 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 72,000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960. What is the variable overhead efficiency variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Variable overhead efficiency variance Mc Graw Hill