Practice Exam 4

Practice Exam 4 - ACCT 2102, Summer 2005, Exam 4 I. (10...

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ACCT 2102, Summer 2005, Exam 4 I. (10 pts.) Woody Co. has set the following direct labor standards for the manufacture of each boxing glove: Standard hrs. 2 Standard cost $24 During 2005, 1450 hours of direct labor time were worked to produce 620 boxing gloves. The cost of labor averaged $13.40 per hour. (a) Labor Rate Variance = $________________________ (b) Labor Efficiency Variance = $____________________ II. (5 pts.) Direct Materials $10,000 Direct Labor 30,000 Other Costs: Variable Fixed Manufacturing $15,000 $25,000 Marketing 5,000 2,000 Administrative 1,000 6,000 Under absorption costing, the amount classified as product costs would be: $ ______________
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III. (4 pts.) Taupo Co. has a capacity of 100,000 units and is currently producing and selling only 90,000 each year. The past year's income statement, as well as that projected for the current year, is as follows: Total Per Unit Sales (90,000 units) $180,000 $2.00 Variable expenses 90,000 1.00 Fixed expenses 45,000 .50 Net income 45,000 .50 Taupo has just received an order that calls for 10,000 units at a total sales price of $12,000. The acceptance will not affect regular sales. Taupo (should, should not) accept the order because total profit will (increase, decrease) by $__________ IV. (10 pts.) Throop Company had budgeted 50,000 units of output using 50,000 units of raw materials at a total material cost of $100,000. Actual output was 50,000 units of product requiring 45,000 units of raw materials at a cost of $2.10 per unit. 1. The material price variance was (the price variance was determined after the materials were used in
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This note was uploaded on 01/16/2012 for the course ACCT 2101 taught by Professor Turner during the Summer '08 term at Georgia Tech.

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Practice Exam 4 - ACCT 2102, Summer 2005, Exam 4 I. (10...

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