Q. 2) Solve the short questions. Total marks 21 (3 marks each) a) Sun manufacturing company has estimated FOH cost for the actual capacity attained of 16000 machine hours is $51000 and its actual FOH cost $43000. whereas the FOH applied rate is $3 per machine hour. How much is the capacity variance of the company? b) Sunshine manufacturing company provides the consumption forecast of its material for the month of July 2020. If the average daily consumption of 500 units and lead time for urgent supplies is 3 days, what is the danger level of the company? c) Sunshine manufacturing company provides the consumption forecast of its material for the month of July 2020. What is the order level of the company if the lead time is 4-8 days? Maximum daily consumption 600 units Average daily consumption 500 units Minimum daily consumption 400 units d) A company's Department 2 costs for June were: Cost from Department 1 is $16320 Cost added in Department 2: Materials 43,415 Labor 56,100 Factory overhead (FOH) 58,575. The quantity schedule shows 12,000 units were received during the month from Department 1; 7,000 units were transferred to finished goods, and 5,000 units in process at the end of June were 50% complete as to materials cost and 25% complete as to conversion cost. Find out the unit cost of material, labor, and FOH in given options? e) In 2005 Alex, Inc. estimated manufacturing overhead for the year to be $896,000. The company uses direct labor hours to apply manufacturing overhead to work-in-process. The budgeted direct labor hours in 2005 were 80,000 hours and the actual hours worked were 82,000. The actual overhead incurred during 2005 was $924,000. Find out the amount of over-applied or under- applied overhead? f) Ali manufacturing company has a monthly requirement of 200 units. Cost to place an order $ 20, Per unit purchase cost of inventory $1.50 and Carrying cost 10 %. The EOQ of the company is? g) Silver moon manufacturing company has provided the following data for its operations during the month of May 2018. Units received in the process from department A were 1500, out of which 60 units were in the process and estimated to be 50% converted. All materials are added at the start of the process. Page 2 of 3 Department A transferred $292,500 total cost to department B. The cost added by department B was as follows: Direct material cost $232,500 Direct labor cost FOH applied cost $147,000 $102,900. The unit cost of material, labor, and FOH is?