# The direct materials purchases variance is computed

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The direct materials purchases variance is computed when the materials are purchased.The materials price variance for June is:A. \$3,332 FB. \$3,590 UC. \$3,332 UD. \$3,590 FMaterials price variance = AQ (AP - SP)= 35,900 liters (\$4.90 per liter - \$5.00 per liter)= 35,900 liters (-\$0.10 per liter) = \$3,590 F
Question 25 Kibodeaux Corporation makes a product with the following standard costs:The labor rate variance for June is:
Question 26 The contribution margin ratio is 30% for the Honeyville Company and the break-even point in sales is \$150,000. If the company's target net operating income is \$60,000, sales would have to be:
Question 27 As of December 31, 2008, Stand Still Industries had \$1,500 of raw materials inventory. At the beginning of 2008, there was \$1,200 of materials on hand. During the year, the company purchased \$183,000 of materials; however, it paid for only \$175,500. How much inventory was requisitioned for use on jobs during 2008?
Question 28 Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:-Sales are budgeted at \$220,000 for November, \$200,000 for December, and \$210,000 for January.- Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.-The cost of goods sold is 65% of sales.- The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.- Other monthly expenses to be paid in cash are \$22,500.-Monthly depreciation is \$19,000.- Ignore taxes.
The cost of December merchandise purchases would be:A. \$133,250B. \$68,250C. \$130,000D. \$143,000
Question 29 Desrevisseau Inc., a manufacturing company, has provided the following data for the month of August. The balance in the Work in Process inventory account was \$10,000 at the beginning of the month and \$22,000 at the end of the month. During the month, the company incurred direct materials cost of \$63,000 and direct labor cost of \$39,000. The actual manufacturing overhead cost incurred was \$40,000. The manufacturing overhead cost applied to Work in Process was \$43,000. The cost of goods manufactured for August was:
Question 30 The Kafusi Company has the following budgeted sales:The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale.