quiz 5 solution - Question 1 Accelerator, Inc. manufactures...

Question 1
Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per
container and the company produces and sells 80,000 containers per month. The company
has established the following standards for each container of surge produced:
standard quantity standard price
direct materials 8 gallons $2.00 per gallon
direct labor 1.25 hours $8.00 per hour
The following information is available for surge for the month of September:
1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000
gallons were used in the production of surge during September.
2. 94,000 direct labor hours were worked during September at a cost of $759,520.
Calculate the direct labor rate variance for September.
x SR)
x 8)

Question 2
Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per
container and the company produces and sells 80,000 containers per month. The company
has established the following standards for each container of surge produced:
standard quantity standard price
direct materials 8 gallons $2.00 per gallon
direct labor 1.25 hours $8.00 per hour
The following information is available for surge for the month of September:
1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000
gallons were used in the production of surge during September.
2. 94,000 direct labor hours were worked during September at a cost of $759,520.
Calculate the direct labor efficiency variance for September.
x SR)
x 8]

Question 3
Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per
container and the company produces and sells 80,000 containers per month. The company
has established the following standards for each container of surge produced:
standard quantity standard price
direct materials 8 gallons $2.00 per gallon
direct labor 1.25 hours $8.00 per hour
The following information is available for surge for the month of September:
1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000
gallons were used in the production of surge during September.
2. 94,000 direct labor hours were worked during September at a cost of $759,520.
Calculate the direct material price variance for September.
x SP)
x 2)