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

Standard quantity per unit of output		4.0	meters
Standard price	$	17.50	per meter

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

Actual materials purchased		6,500	meters
Actual cost of materials purchased	$	116,350
Actual materials used in production		6,000	meters
Actual output		1,430	units

What is the materials price variance for the month?

Multiple Choice

• $2,600 U

• $5,012 U

• $7,670 U

• $7,000 U

6.

Rawe Corporations accounts receivable at the end of Year 2 was $357,000 and its accounts receivable at the end of Year 1 was $311,000. Sales, all on account, amounted to $1,443,000 in Year 2. The companys average collection period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-10-04

Multiple Choice

• 90.3 days

• 84.5 days

• 4.3 days

• 78.7 days

7.

Erastic Corporation has $34,000 in cash, $18,000 in marketable securities, $64,000 in account receivable, $80,000 in inventories, and $62,000 in current liabilities. The corporations current assets consist of cash, marketable securities, accounts receivable, and inventory. The corporations acid-test ratio is closest to:

Multiple Choice

• 1.03

• 3.16

• 1.87

• 1.58

8.

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:

Equipment depreciation	$	84,000
Supervisory expense	$	5,500

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Machining	Order Filling		Other
Equipment depreciation	0.50	0.20		0.30
Supervisory expense	0.50	0.10		0.40

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

	MHs (Machining)	Orders (Order Filling)
Product M0	1,430	1,240
Product H2	9,170	2,230
Total	10,600	3,470

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Multiple Choice

• $11,150

• $38,697

• $17,350

• $61,550