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Question 17 Eastminster Company has the following information: Direct Materials: Direct Labor: Standard Quantity: 10,000 Standard Hours: 2,000 Actual...

6 multiple choice questions attached
Question 17 Eastminster Company has the following information: Direct Materials: Direct Labor: Standard Quantity: 10,000 Standard Hours: 2,000 Actual Quantity: 12,000 Actual Hours: 1,875 Standard Price: $14 Standard Rate: $10 Actual Price: $12 Actual Rate: $11 Determine the materials price variance and whether it is favorable or unfavorable. Select one: a. $24,000 Favorable b. $20,000 Favorable c. $20,000 Unfavorable d. $24,000 Unfavorable Question 18 Eastminster Company has the following information: Direct Materials: Direct Labor: Standard Quantity: 10,000 Standard Hours: 2,000 Actual Quantity: 12,000 Actual Hours: 1,875 Standard Price: $14 Standard Rate: $10 Actual Price: $12 Actual Rate: $11 Determine the materials usage variance and whether it is favorable or unfavorable. Select one: a. $28,000 Favorable b. $24,000 Favorable c. $24,000 Unfavorable d. $28,000 Unfavorable Question 19 Eastminster Company has the following information: Direct Materials: Direct Labor: Standard Quantity: 10,000 Standard Hours: 2,000 Actual Quantity: 12,000 Actual Hours: 1,875 Standard Price: $14 Standard Rate: $10 Actual Price: $12 Actual Rate: $11 Determine the labor rate variance and whether it is favorable or unfavorable. Select one: a. $2,000 Favorable b. $1,875 Favorable c. $1,875 Unfavorable d. $2,000 Unfavorable Question 20
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Eastminster Company has the following information: Direct Materials: Direct Labor: Standard Quantity: 10,000 Standard Hours: 2,000 Actual Quantity: 12,000 Actual Hours: 1,875 Standard Price: $14 Standard Rate: $10 Actual Price: $12 Actual Rate: $11 Determine the labor efficiency variance and whether it is favorable or unfavorable. Select one: a. $1,375 Favorable b. $1,250 Favorable c. $1,250 Unfavorable d. $1,375 Unfavorable Question 6 McDougall Company charges cost plus 25%. If the price of an item is $80, what is the item’s cost? Select one: a. $80.00 b. $100.00 c. $62.50 d. $64.00 Question 7 Piersall Company makes a variety of paper products. One product is 20 lb copier paper, packaged 5,000 sheets to a box. One box normally sells for $18. A large bank offered to purchase 3,000 boxes at $14 per box. Costs per box are as follows: Direct materials $8 Direct labor 3 Variable overhead 1 Fixed overhead 5 No variable marketing costs would be incurred on the order. The company is operating significantly below the maximum productive capacity. No fixed costs are avoidable. Should Piersall accept the order? Select one: a. Yes, income will increase by $6,000 b. Yes, income will increase by $9,000 c. No, income will decrease by $3,000 d. No, income will decrease by $6,000
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