quiz 6 solution - Question 1 XYZ Company makes 30,000...

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Question 1XYZ 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..............$ 9.50direct labor..................8.60variable overhead.............3.75allocated fixed overhead......4.35total.........................$26.20The motor has recently become available from an outside supplier for $25 per motor. IfXYZ purchases the motor from the outside supplier, the space that is currently beingused to manufacture the motor can be rented out for $154,500 per year.Calculate theselling price per unit charged by the outside supplier that would makeXYZ economically indifferent between making and buying the motor.BUYMAKExX
Question 2Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 percontainer and the company produces and sells 80,000 containers per month. The companyhas established the following standards for each container of surge produced:standard quantitystandard pricedirect materials8 gallons$2.00 per gallondirect labor1.25 hours$8.00 per hourThe 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. 600,000gallons 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 thedirect material price variancefor September.xSP)x2)
Question 3Accelerator, Inc. manufactures a fuel additive called surge. Surge sells for $44 percontainer and the company produces and sells 80,000 containers per month. The companyhas established the following standards for each container of surge produced:standard quantitystandard pricedirect materials8 gallons$2.00 per gallondirect labor1.25 hours$8.00 per hourThe 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. 600,000gallons 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 thedirect material quantity variancefor September.

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Term
Spring
Professor
TeriZiegler
Tags
Direct material price variance, XYZ Company

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