Question 1: Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
The cash collections in September from accounts receivable are _______.
$240,000
$134,400
$192,000
$168,000
Question 2: The following data is given for the Walker Company:
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Budgeted production
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26,000 units
|
|
Actual production
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27,500 units
|
|
Materials:
|
|
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Standard price per ounce
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$6.50
|
|
Standard ounces per completed unit
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8
|
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Actual ounces purchased and used in production
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228,000
|
|
Actual price paid for materials
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$1,504,800
|
|
Labor:
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|
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Standard hourly labor rate
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$22 per hour
|
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Standard hours allowed per completed unit
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6.6
|
|
Actual labor hours worked
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183,000
|
|
Actual total labor costs
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$4,020,000
|
|
Overhead:
|
|
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Actual and budgeted fixed overhead
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$1,029,600
|
|
Standard variable overhead rate
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$24.50 per standard labor hour
|
|
Actual variable overhead costs
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$4,520,000
|
Overhead is applied on standard labor hours.
The direct material price variance is _______.
22,800U
22,800F
52,000U
52,000F
Question 3: The following data relate to direct labor costs for the current period:
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Standard costs
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9,000 hours at $5.50
|
|
Actual costs
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8,750 hours at $5.75
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What is the direct labor rate variance?
$2,250.00 unfavorable
$2,187.50 unfavorable
$1,438.00 favorable
$1,375.00 favorable
Question 4:
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Standard
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Actual
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|
Material Cost Per Yard
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$2.00
|
$2.04
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|
Standard Yards per Unit
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5 yards
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4.75 yards
|
|
Units of Production
|
|
9,450
|
Calculate the Total Direct Materials cost variance using the above information.
$2,929.50 Unfavorable
$2,929.50 Favorable
$3,780.00 Unfavorable
$3,562.50 Favorable
Question 5: Which of the following is not a reason for a direct materials quantity variance?
Malfunctioning equipment
Purchasing of inferior raw materials
Material requiring rework
Spoilage of materials