Refer to the T-account below:

Manufacturing Overhead
(2)	9,000	(12)	167,000
(3)	15,000
(4)	80,000
(5)	30,000
(6)	25,000
	159,000		167,000
		Bal.	8,000

The ending balance of $8,000 represents which of the following?

Garrison 16e Rechecks 2017-08-29

Multiple Choice

• A bookkeeping error.

• Manufacturing overhead that will be carried over to the next period.

• Underapplied overhead.

• Overapplied overhead

The following labor standards have been established for a particular product:

Standard labor-hours per unit of output		8.4	hours
Standard labor rate	$	12.20	per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked		6,200	hours
Actual total labor cost	$	73,160
Actual output		950	units

What is the labor efficiency variance for the month?

Multiple Choice

• $24,196 F

• $21,004 F

• $24,196 U

• $21,716 F

Luchini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:

1. The budgeted selling price per unit is $111. Budgeted unit sales for April, May, June, and July are 7,100, 10,100, 13,300, and 14,000 units, respectively. All sales are on credit.
2. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.
3. The ending finished goods inventory equals 10% of the following month's sales.
4. The ending raw materials inventory equals 30% of the following months raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $5.00 per pound.
5. Regarding raw materials purchases, 40% are paid for in the month of purchase and 60% in the following month.
6. The direct labor wage rate is $18.00 per hour. Each unit of finished goods requires 2.9 direct labor-hours.
7. Variable manufacturing overhead is $7.00 per direct labor-hour. Fixed manufacturing overhead is zero.

If the budgeted cost of raw materials purchases in April is $207,650 and in May is $282,625, then in May the total budgeted cash disbursements for raw materials purchases is closest to:

Multiple Choice

• $237,640

• $169,575

• $113,050

• $124,590

The project profitability index and the internal rate of return:

Multiple Choice

• will sometimes result in different preference rankings for investment projects.

• are less dependable than the payback method in ranking investment projects.

• will always result in the same preference ranking for investment projects.

• are less dependable than net present value in ranking investment projects.

Courington Detailing's cost formula for its materials and supplies is $1,970 per month plus $8 per vehicle. For the month of August, the company planned for activity of 92 vehicles, but the actual level of activity was 57 vehicles. The actual materials and supplies for the month was $2,650.

The activity variance for materials and supplies in August would be closest to:

Multiple Choice

• $280 F

• $280 U

• $56 F

• $56 U

Which of the following would be an acceptable measure of activity for a material handling activity cost pool?

Options	Number of material moves	Weight of material moved
A	Yes	Yes
B	No	Yes
C	Yes	No
D	No	No

rev: 06_23_2017_QC_CS-91879

Multiple Choice

• Option B

• Option D

• Option A

• Option C