1.  Starfish Enterprises produces men’s sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Material costs for a selected job is $900 for a batch of 30 suit coats (units).

The material cost per unit is ________.

• $27.00
• $30.00
• $27.70
• $26.00

 

2.  Starfish Enterprises management has obtained data on the material costs for a selected job which used 300 feet of materials, while estimates for the job required only 260 feet of materials. The materials price per unit was the same.

Which is not a reason for the difference in material usage?

• A new employee worked on the job.
• The material used was of poor quality.
• The cutting tools were in need of repair.
• The cost of materials increased from the time of the estimate.