# final_test_prep_w_answers - Chapter 9 27 Mcgann Corporation...

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Chapter 9 27. Mcgann Corporation is developing standards for its products. Each unit of output of the product requires 0.53 kilogram of a particular input. The allowance for waste and spoilage is 0.06 kilogram of this input for each unit of output. The allowance for rejects is 0.12 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be: A. 0.53 B. 0.35 C. 0.71 D. 0.47 Standard quantity 28. Daughdrill Corporation is developing direct labor standards. The basic direct labor wage rate is \$10.95 per hour. Employment taxes are 9% of the basic wage rate. Fringe benefits are \$4.00 per direct labor-hour. The standard rate per direct labor-hour should be: A. \$5.96 B. \$4.99 C. \$10.95 D. \$15.94

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29. Zellner Corporation is developing direct labor standards. A particular product requires 0.94 direct labor-hours per unit. The allowance for breaks and personal needs is 0.02 direct labor- hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.10 direct labor- hours per unit. The standard direct labor-hours per unit should be: A. 0.82 B. 0.92 C. 0.94 D. 1.06 31. The following materials standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the materials quantity variance for the month? A. \$15,240 U B. \$6,350 U C. \$14,340 U D. \$5,975 U SQ = 1,000 × 5.1 = 5,100 Materials quantity variance = SP (AQ - SQ) = \$11.95 (6,300 - 5,100) = \$14,340 U
39. Direct labor standards at Cepeda Manufacturing Corporation allow 5 direct labor-hours for every unit produced. The standard direct labor rate is \$12.00 per hour. During the month of February, Cepeda incurred 35,000 direct labor-hours and recorded a \$15,000 favorable labor efficiency variance. How many units did Cepeda produce during February? A. 6,750 B. 7,250 C. 33,750 D. 36,250 40. In a recent period 12,250 units were made and there was a favorable labor efficiency variance of \$22,500. If 41,000 labor-hours were worked and the standard wage rate was \$12 per labor- hour, the standard hours allowed per unit of output is closest to: A. 3.19 B. 3.35 C. 3.50 D. 6.00 42. The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month:

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What is the variable overhead rate variance for the month? A. \$6,226 U B. \$2,050 U C. \$1,940 F D. \$8,166 U
AR = \$116,030 ÷ 8,200 = \$14.15 Variable overhead rate variance = AH (AR - SR) = 8,200 (\$14.15 - \$13.90) = \$2,050 U 43. At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled \$9,800 and that the associated rate variance was \$200 unfavorable. If 8,000 machine- hours were actually worked during July, the budgeted maintenance cost per machine-hour was: A. \$1.20 B. \$1.25 C. \$1.275

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final_test_prep_w_answers - Chapter 9 27 Mcgann Corporation...

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