Nine Cost Accounting Questions

First two questions use this

Company produced 2100 units

Standard:

Material  2lbs per unit at 5.80 per lb

Labor  3 direct labor hours per unit at 10 per hour

Actual:

Material  4250lbs purchased and used at 5.65 per lb

Labor 6,600 direct labor hours at 9.75 per hours

1.      What is the labor rate variance

A.     1650U

B.     1650F

C.     1575U

D.     1575F

2.      What is the labor efficiency variance?

A.     3000F

B.     3000U

C.     2925F

D.     2925U

Next 3 questions use this

Company uses standard cost system for its production and applies overhead based on direct labor hours.  In sept Company produced 5000 units

Standard:

Direct labor hours per unit 3

Variable overhead per direct labor hour   1.80

Fixed overhead per direct labor hour  3.25

Budged Units  5400

Actual:

Direct labor hours  16000

Variable overhead  31325

Fixed overhead   48750

3.      What is the variable overhead spending variance?

A.     2525U

B.     2525F

C.     4075U

D.     4075F

4.      What is the fixed overhead spending variance?

A.     2900U

B.     2900F

C.     3900U

D.     3900F

5.      What is the fixed overhead volume variance

A.     2900F

B.     2900U

C.     3900F

D.     3900U

Last 4 questions use this information about the last quarter of 2014

1.      Estimated sales in number of bells in Oct through Feb are  380, 510, 460, 370, and 410 respectively. Each item bell sells for 860

2.      The ending GF inventory should be 20% of the next months demand

3.      FG inventory is 65 bells  at 9/30/14

4.      The collection pattern for AR is as follows- 60% month of sale, 20% in the first month after the sale, 15% in the second month after sale, and 5% in the third month after sale.  There are no bad debts and no customers are given discounts.  Actual sales for bells in July, Aug, and Sept were 407, 413, and 394 respesctively

6.  Budget sales revenue for the last quarter in 2014 is

A. 966,000

B. 1,044,000

C. 1,161,000

D. 1,236,000

7.  Budget collections during the month of Oct is

A. 334626

 B.338840

C. 391042

D. 398640

8. Budged collections from Oct sales during the quarter is

A. 308560

B. 310460

C. 350880

D. 356920

9. Budgeted units of production for the last quarter of 2013 is

A. 887

B. 950

C. 1278

D. 1359