variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a --------- labor rate than planned. The lower level of experience or training may have resulted in -------- efficient performance. Thus, the actual time required was -- than standard. NB: Based upon your answer to (a) use Less, More or Lower to fill in the blank in (b) 5. Activity Bases for Service Department Charges For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units. Activity bases to choose from: 1. Number of employees trained 2. Number of payroll checks 3. Number of sales invoices 4. Number of computers 5. Number of conference attendees 6. Number of travel claims 7. Number of purchase requisitions 8. Number of cell phone minutes used Service Department Activity Base a. Accounts Receivable b. Central Purchasing c. Computer Support d. Conferences e. Employee Travel 1. Payroll Accounting 2. Telecommunications h. Training 1 Eactory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August: Advertising expenses $243,760 Manufacturing supplies 13,360 Power and light 39,840 Sales commissions 263,350 Factory insurance 23,200 Production supervisor wages 117,190 Production control wages 30,470 Executive officer salaries 248,440 Materials management wages 33,520 Factory depreciation 18,990 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs, 2 Sshestute of Cash Collections of Accounts Receivable Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May $240,000 June 270,000 July 350,000 All sales are on account. 58 percent of sales are expected to be collected in the month of the sale, 31% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for May, Junc, and July Price 3. Standard Direct Materials Cost per Unit Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1.971 bars) are as follows: Ingredient Quantity Cocoa 480 lbs. $0.30 per Ib. Sugar 150 lbs. 80.60) per Ib. Milk 120 gal. S1.50 per gal Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. 4. Direct Labor Variances The following data relate to labor cost for production of 4,000 cellular telephones: Actual: 2,690 hrs. at $14.70 Standard: 2,650 hrs, at S15.00 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost
