QUESTION 11

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20) $240

Direct labor (10 hours @ $12) $120

Total prime cost $360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Calculate the labor rate variance and the labor efficiency variance, respectively.

a.$4,500 U and $3,000 U

b.$4,500 F and $3,000 F

c.$4,500 U and $3,000 F

d.$4,500 F and $3,000 U

QUESTION 12

Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows:

Direct materials (2 pieces of wood @ $2.25) $4.50

Direct labor (2 hours @ $10) $20.00

Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50.

What is the materials price variance?

a.$100,000 F

b.$112,500 U

c.$135,000 F

d.$170,000 U

QUESTION 13

Anemone Company produces picture frames. During the year, 200,000 pictureframes were produced. Materials and labor standards for producing the pictureframes are as follows:

Direct materials (2 pieces of wood @ $3) $6.00

Direct labor (2 hours @ $12) $24.00

Anemone purchased and used 600,000 pieces of wood at $4.00 each, and itsactual labor hours were 320,000 hours at a wage rate of $13.

What is Anemone's labor rate variance?

a.$450,000 F

b.$320,000 U

c.$445,000 U

d.$660,500 F

QUESTION 14

Planet Company had operating income of $12,000, average operating assets of $125,000, and sales of $45,000. What is Planet'sreturn on investment (ROI)? (Note: Round answer to two decimal places.)

a.9.60%

b.20.60%

c.25.50%

d.5.80%

e.4.50%

QUESTION 15

Atlas Company provided the following information for last year:

Operating income $ 92,000

Sales 235,000

Beginning operating assets 410,000

Ending operating assets 440,000

Calculate Atlas's turnover ratio for last year. (Note: Round answer to two decimal places.)

a.2.15

b.0.46

c.0.55

d.0.32

e.0.10