We are analyzing 2 products product X and product Y.

• Product X requires 3 Part As and 4 Part Bs.
• Product Y requires 2 Part As and 3 Part Bs.
• The standard cost for Part A is $12 per unit.
• The standard cost for Part B is $24 per unit.
• During this month, the company purchased 50,000 units of Part A for $587,500 (there was no beginning balance).
• During this month, the company purchased 100,000 units of Part B for $2,500,000 (there was no beginning balance).
• During the month the company produced 500 Xs and 1000 Ys.
• During the month the company used 3550 units of Part A and 4975 units of Part B.
• Factory payroll was $393,000 with 19,500 hours (this is actual - direct labor only).
• X uses 12 standard direct labor hours.
• Y uses 14 standard direct labor hours.
• Labor standard cost is $20 per hour.

hint: for production of both X and Y

2.Use the information given in Problem I.

Use standard cost information for all calculations except as noted below.

Department	$Costs	Activity Cost Driver
Supplies	$22,000	Direct labor hours
Assembling	$17,000	Units of standard direct material (Parts)
Packaging	$15,000	Completed units

answer each question separately please

1. B -- Actual Cost (total)

2. A - Flex Budget

3. A - Use (Quantity) Variance

4. A - Price Variance (fav/unf)

5. A- Direct Material Total Variance

6. If the Use Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted. A. Standard Price B. Actual Cost C. Standard Quantity D. Actual Quantity

7. B - Direct Material Total Variance (fav/unf)

8. B - Direct Material Total Variance

9. If the Rate Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted. (Standard Rate, Actual Rate, Standard Hours or Actual Hours)

10. DL Total Variance

11. The production volume was down leading to a higher proportion of full-time workers. What is a likely outcome? (Favorable Rate Variance, Unfavorable Rate Variance, Favorable Total DL variance or Unfavorable Total DL variance)

12. A - Standard Cost (total)

13. The production volume was down leading to a higher proportion of full-time workers. What is a likely outcome? (Favorable Efficiency Variance, Unfavorable Efficiency Variance, Favorable Total DL Variance or Unfavorable Total DL Variance)

14. A - Use (Quantity) Variance (fav/unf)

15. The company's regular vendor could not meet our entire need this month. The buyer had to use an alternative vendor. Select the most likely outcome. (Favorable Price Variance, Unfavorable Price Variance, Favorable Use Variance or Unfavorable Use Variance)

16. DL - Standard Cost (Total)

17. B - Use variance (Fav/Unf)

18. The company had a favorable use variance. What is a possible reason (choose the best answer)?

(Some material was wasted in production, A higher proportion of part-time workers were used., The standard quantity needs to be adjusted for next period or A lower proportion of full-time workers were used leading to less efficiency.)

19. The company's buyer found a vendor that was able to supply our demand at a lower price. Select the most likely outcome. (Favorable Price Variance, Unfavorable Price Variance, Favorable Use Variance, Unfavorable Use Variance)

20. DL - Efficiency (labor quantity) variance (fav/unf)

21. A - Price Variance

22. If the Price Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted. (Standard Price, Actual Price, Standard Quantity, Actual Quantity)

23. If the Efficiency Variance is significant, and management decides the standards need to be adjusted, which element needs to be adjusted. (Standard Rate, Actual Rate, Standard Hours, Actual Hours)

24. DL -- Flex Budget

25. DL - Actual Cost (Total)