Question 1 XYZ Company makes 30,000 motors to be used in...

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Question 1 XYZ Company makes 30,000 motors to be used in the production of its power lawn mowers. The cost per motor at this level of activity is as follows: direct materials .............. $ 9.50 direct labor .................. 8.60 variable overhead ............. 3.75 allocated fixed overhead ...... 4.35 total ......................... $26.20 The motor has recently become available from an outside supplier for $25 per motor. If XYZ purchases the motor from the outside supplier, the space that is currently being used to manufacture the motor can be rented out for $154,500 per year. Calculate the selling price per unit charged by the outside supplier that would make XYZ economically indifferent between making and buying the motor . BUY MAKE x X
Question 2 Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct material price variance for September. x SP) x 2)
Question 3 Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 per container and the company produces and sells 80,000 containers per month. The company has established the following standards for each container of surge produced: standard quantity standard price direct materials 8 gallons $2.00 per gallon direct labor 1.25 hours $8.00 per hour The following information is available for surge for the month of September: 1. 645,000 gallons of chemicals were purchased at a cost of $1,161,000. 600,000 gallons were used in the production of surge during September. 2. 94,000 direct labor hours were worked during September at a cost of $759,520. Calculate the direct material quantity variance for September.

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