Principal Managerial Accounting Homework

1.

The management of Cleancut Lawnmowers has calculated the following variances: Direct materials cost variance $8,000 U Direct materials efficiency variance 36,000 F Direct labor cost variance 16,000 F Direct labor efficiency variance 13,000 U Variable overhead cost variance 3,000 F Variable overhead efficiency variance 6,000 F Fixed overhead cost variance 4,000 F When determining the total product cost flexible budget variance, what is the total manufacturing overhead variance of the company? . . . . . O A. $9,000 F O B. $6,000 F O C. $4,000 F O D. $13,000 FMarciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 2 Cost per pound of direct materials $6 The company plans to produce 3,000 units and has purchased on account 12,000 pounds of direct materials at a net cost of $45,000. What is the journal entry to record this transaction? O A. Raw Materials Inventory 45,000 Direct Materials Cost Variance 27,000 Accounts Payable 18,000 0 3- Raw Materials Inventory 18,000 Direct Materials Cost Variance 27,000 Accounts Payable 45,000 O 0. Raw Materials Inventory 72,000 Direct Materials Cost Variance 27,000 Accounts Payable 45,000 O D. Raw Materials Inventory 45,000 Direct Materials Cost Variance 27,000 Accounts Payable 72,000 Nolan Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 7 Cost per pound of direct materials $4 The company plans to produce 900 units and has purchased on account 2,700 pounds of direct materials at a net cost of $10,300. What is the journal entry to record the purchase of materials? 0 A. Raw Materials Inventory 10,800 Direct Materials Cost Variance 500 Accounts Payable 10,300 O B. Raw Materials Inventory 10,300 Direct Materials Cost Variance 500 Accounts Payable 10,800 0 C. Raw Materials Inventory 10,800 Direct Materials Cost Variance 500 Accounts Payable 11,300 O D. Raw Materials Inventory 11,300 Direct Materials Cost Variance 500 Accounts Payable 10,800 Barker Manufacturing uses a standard cost system. The allocation base for overhead costs is direct labor hours. Actual variable manufacturing overhead costs were $34,000 and actual fixed overhead costs were $27,000. Allocated variable overhead costs (variable and fixed) was $63,000. What is the journal entry to record the overhead costs incurred? (Use Various Accounts to simplify the offsetting entry when several accounts could be involved.) O A. Various Accounts 61,000 Manufacturing Overhead 61,000 O B. Manufacturing Overhead 63,000 Various Accounts 63,000 O C. Various Accounts 63,000 Manufacturing Overhead 63,000 O D. Manufacturing Overhead 61,000 Various Accounts 61,000Marsh, Inc. provides the following information: Actual Sales Static Budget Sales Revenue $560,000 $526,000 Calculate the sales volume variance. 0 A. $34,000 U 0 B. $100,000 F O C. $34,000 F O D. $66,000 U Flexible Budget Sales Volume Variance $460,000 ? Reynolds Construction Materials Company has a sales office that sells concrete culvert pipes to property developers. The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Actual Flexible Sales Product Sales Budget Flexible Volume Static Type Revenue Variance U/F Budget Variance U/F Budget 40 inch $31,500 $30,500 $40,000 36 inch long 40,200 42, 100 33,000 36 inch short 36, 100 33,000 30,000 32 inch 19, 100 20,300 28,000 What is the flexible budget variance for the 40 - inch pipe? . . . . . O A. $1,000 U O B. $9,500 F O C. $1,000 F O D. $9,500 UKatsu, Inc. has a small car division that operates as a profit center. Below is a partially completed responsibility report for the first quarter. Responsibility Report Flexible Flexible Budget Percentage Actual Budget Variance U/F Variance U/F Sales Revenue $688, 100 $700,000 Variable Expenses 309,400 322,000 Contribution Margin 378,700 378,000 Traceable Fixed Expenses 371,000 368,000 Division Margin $7,700 $10,000 Compute the percentage variance for the flexible budget variance for sales revenue. (Round your answer to two decimal places.) . . . . . O A. 1.7% F O B. 3.91% F O C. 1.7% U O D. 3.91% UStep Up Ladders Company provides the following financial information: Income from operations $300,000 Interest expense 48,000 Gains/(losses) on sale of equipment 2,900 Net income 249, 100 Total assets at Jan. 1 2,700,000 Total assets at Dec .31 3,200,000 Calculate return on investment based on the information given above. (Round your answer to two decimal places.) . . . . . O A. 10.17% O B. 8.44% O C. 11.11% O D. 9.38%Scribe Company, a manufacturer of writing instruments, provides the following nancial information: Pen Division Pencil Division Operating income $90,000 $30,000 Net sales $500,000 $150,000 Total assets at Jan. 1 $600,000 $255,000 Total assets at Dec. 31 $610,000 $235,000 Calculate the return on investment for the Pencil Division. (Round your answer to two decimal places.) 0 A. 11.76% 0 B. 14.88% 0 C. 12.24% 0 D. 12.77% Accelerated Logistics provides the following information: Operating income $1,550,000 Net sales $13,000,000 Average total assets $1,900,000 Management's target rate of return 30% What is the company's prot margin ratio? (Round your answer to two decimal places.) O A. 11.92% 0 B. 1.1% O c. 81.58% 0 D. 14.62% Express Logistics provides the following information: Operating income $1,500,000 Net sales $14,000,000 Average total assets $1,950,000 Management's target rate of return 20% What is the company's return on investment? (Round your answer to two decimal places.) 0 A. 76.92% 0 B. 10.71% 0 C. 20% O D. 13.93%