Quiz09a - Quiz Chapter 9 Solutions 1. The Wright Company...

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Page 1 Quiz – Chapter 9 – Solutions 1. The Wright Company has a standard costing system. The following data are available for September: Actual quantity of direct materials purchased . ....... 25,000 pounds Standard price of direct materials . .......................... $2 per pound Material price variance . .......................................... $2,500 unfavorable The actual price per pound of direct materials purchased in September is: A) $1.85. B) $2.00. C) $2.10. D) $2.15. C is correct. Actual Cost Mixed Flexible Budget AP X AQ SP X AQ SP X AQ SP X SQ $? x 25,000 lbs $2.00 x 25,000 lbs $? |________ $50,000 ________| (-) Price Variance (-) Quantity Variance $? - $50,000 = $2,500 U The actual cost has to be $52,500. The actual price is obtained by dividing $52,500/25,000 = $2.10. 2. The Cox Company uses standard costing. The following data are available for April: Actual quantity of direct materials used . .... 12,200 gallons Standard price of direct materials . .............. $4 per gallon Material quantity variance . ......................... $2,000 unfavorable The standard quantity of material allowed for April production is: A) 14,200 gallons. B) 12,700 gallons. C) 11,700 gallons. D) 10,200 gallons. C is correct.
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Page 2 Actual Cost Mixed Flexible Budget AP X AQ SP X AQ SP X SQ $4.00 x 12,200 gals $4.00 x ? gals |________ $48,800 ________________| |________________ $? ________| (-) Price Variance (-) Quantity Variance $48,800 - $? = $2,000 U The flexible budget must be $46,800. In order to get the standard quantity you need to divide $46,800/4.00 = 11,700 gallons 3. Palo Corp. manufactures one product with a standard direct labor cost of 2 hours at $6.00 per hour. During March, 500 units were produced using 1,050 hours at $6.10 per hour.
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This note was uploaded on 10/02/2008 for the course MGMT 122 taught by Professor Saouma during the Spring '08 term at UCLA.

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Quiz09a - Quiz Chapter 9 Solutions 1. The Wright Company...

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