C06_Practice_Test_Oct_2010

C06_Practice_Test_Oct_2010 - The following questions are...

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The following questions are from last year’s midterm test. The time allowed was 90 minutes. Solutions will be posted next week. QUESTION 1 ( 14 marks ) The Wengas Novelty Co. uses a standard cost system based on the following standard cost for each unit of output: Materials 4 Kg. of Q at $0.50 per Kg $ 2.00 Labour 2 hours at $4.00 per hour 8.00 $10.00 You are given the following information for the month of September 2009: Inventories, Sept. 1 : WIP (100% materials, 50% processed) 120 units Finished goods 500 units Inventories, Sept 30: WIP (100% materials, 60% processed) 200 units Finished goods 400 units Production of finished units during September : 900 units Materials: Purchased 5,600 kilograms of Q at a total cost of $2,690. Used 3800 Kg. Labour: Wages paid: $7,600 for 1870 hours worked. REQUIRED: A. Calculate price(rate) and efficiency (quantity) variances for both materials and labour. Show your calculations and label the variances as favourable or
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This note was uploaded on 05/31/2011 for the course MGT C06 taught by Professor A.stawinoga during the Fall '10 term at University of Toronto- Toronto.

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C06_Practice_Test_Oct_2010 - The following questions are...

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