Question 6

Question 6 options:

During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015:

2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000

Assume the selling price of ABC Company's product was $80 per unit for both years.

Calculate ABC Company's 2015 cost of goods sold using variable costing. Assume ABC Company employs a FIFO inventory cost flow assumption. Do not use decimals in your answer.

Quiz Please Note: It is recommended that you save your response as you complete each question. Question 1 (3 points) Question 1 options: Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct labor rate variance for September. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer. Save Question 2 (3 points) Question 2 options: Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct labor efficiency variance for September. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer. Save Question 3 (3.5 points) Question 3 options: Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct material price variance for September. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer. Save Question 4 (3.5 points) Question 4 options: Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct material quantity variance for September. If the variance is favorable, enter an F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer. Save Question 5 (3.5 points) Question 5 options: During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015: 2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000 Assume the selling price of ABC Company's product was $80 per unit for both years. Calculate ABC Company's 2014 net income using variable costing. Do not use decimals in your answer. Save Question 6 (5 points) Question 6 options: During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015: 2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000 Assume the selling price of ABC Company's product was $80 per unit for both years. Calculate ABC Company's 2015 cost of goods sold using variable costing. Assume ABC Company employs a FIFO inventory cost flow assumption. Do not use decimals in your answer. Save Question 7 (5 points) Question 7 options: During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015: 2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000 Assume the selling price of ABC Company's product was $80 per unit for both years. Calculate ABC Company's 2015 gross profit using variable costing. Assume ABC Company employs a weighted average inventory cost flow assumption. Do not use decimals in your answer. Save Question 8 (3.5 points) Question 8 options: During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015: 2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000 Assume the selling price of ABC Company's product was $80 per unit for both years. Calculate the dollar amount of ABC Company's finished goods inventory that would appear on the December 31, 2014 balance sheet using absorption costing. Do not use decimals in your answer. Save Question 9 (5 points) Question 9 options: During 2014, its first year of operations, ABC Company produced 20,000 units and sold 12,000 units. During 2015, ABC Company produced 22,000 units and sold 28,000 units. The following information was taken from ABC's accounting records for 2014 and 2015: 2014 2015 Direct materials cost per unit .................... $18 $15 Direct labor cost per unit ........................ $20 $24 Variable overhead cost per unit ................... $10 $12 Variable selling & administrative cost per unit ... $5 $5 Fixed overhead (total cost) ....................... $120,000 $165,000 Fixed selling & administrative (total cost) ....... $100,000 $140,000 Assume the selling price of ABC Company's product was $80 per unit for both years. Calculate ABC Company's 2015 net income using absorption costing. Assume ABC Company employs a LIFO inventory cost flow assumption. Do not use decimals in your answer. Save Question 10 (5 points) Question 10 options: Border Company employs a standard costing system and uses a flexible budget to predict overhead costs at various levels of activity. For the most recent year, Border had total budgeted overhead costs of $160,000 for 10,000 direct labor hours and $240,000 for 20,000 direct labor hours. During the most recent year, Border generated the following data: Actual number of units produced ...................... 2,000 units Actual variable overhead costs ........................ $135,000 Variable overhead efficiency variance ................. $3,200 Favorable Standard direct labor hours for each unit produced .... 8.5 hours Calculate the variable overhead spending variance for the most recent year. If the variance is favorable, enter a capital F after your number with a space between the number and the F (i.e., 10,000 F). If the variance is unfavorable, enter a capital U after your number with a space between the number and the U (i.e., 10,000 U). Do not use decimals in your answer. Save Save All Responses