GNB13eCh11Exam - Garrison 13e Practice Exam Chapter 11...

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Garrison 13e Practice Exam – Chapter 11 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. Penobscot Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Quantity Standard Price Standard Cost Direct labor 2.6 hours $44.00/hour $114.40 Direct materials 12.0 pounds $14.00/pound 168.00 During April, the company purchased 330,000 pounds of direct material at a total cost of $4,686,000. The total factory wages for June were $3,200,000, of which 90% was for direct labor. The company manufactured 25,000 units of product during April using 302,000 pounds of direct material and 64,000 direct labor hours. Part (a) What is the price variance for the direct material acquired by the company during April? Part (b) What is the direct material quantity variance for April? Part (c) What is the direct labor rate variance for April?
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Part (d) What is the direct labor efficiency variance for April? 2. Phoenix Company maintains warehouses that stock items carried by its e-retailer clients. When one of Phoenix’ clients receives an order from an online customer, the order is forwarded to Phoenix. Phoenix then pulls the item from the warehouse, packs it and ships it to the customer. Phoenix uses a predetermined variable overhead rate based on direct labor- hours. According to the company’s records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct-labor hour. During December, Phoenix shipped 120,000 orders using 4,600 direct labor-hours. The company incurred a total of $14,720 in variable overhead costs. Part (a) What is the variable overhead rate variance during December?
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This note was uploaded on 12/16/2009 for the course ACCT 116B 00138 taught by Professor Seymour during the Fall '09 term at Mesa CC.

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GNB13eCh11Exam - Garrison 13e Practice Exam Chapter 11...

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