Question

QUESTION 23

1. At Jamal's Juices, each smoothie requires 16 oz of juice, which costs $0.15/oz. It takes 0.10 hrs of direct labor to make smoothies, at $9.35 per DLH. Variable overhead costs $1.15/smoothie, and fixed costs total $98,000 per year. They expect to produce 72,000 smoothies next year.

   Calculate the manufacturing overhead budget for next year.

   		$67,320
   		$82,800
   		$150,120
   		$180,800

QUESTION 24

1. Dex, Inc. installs pre-built decks on mobile homes. They expect to make 300 decks next year, where each deck requires 500 ft of lumber, at $1.75 per foot.

   Calculate the standard cost of direct materials (per deck).

   		$262,500
   		$875
   		$1,400
   		$525

QUESTION 25

1. Dreidell Corporation expected to use 4.5 direct labor hours to produce one unit of their product, at a rate of $14.5/DLH. Actual results for last year indicate that they sold 5,000 units, where their direct labor workforce actually worked 6,000 hours at a rate of $14.25/DLH. What is the Direct Labor Rate Variance?

   		$1,250 favorable
   		$1,500 favorable
   		$1,500 unfavorable
   		$1,250 unfavorable

QUESTION 26

1. Copper Burgers sells burgers with 0.5 lb meat on each burger. They expected to buy meat at $2.30/lb, but actually ended up paying $3.35/lb. They made 100 burgers this week, and actually used 55 lbs of meat. Calculate the Direct Materials Quantity Variance.

   		$11.50 unfavorable
   		$105 favorable
   		$105 unfavorable
   		$16.75 favorable

Answer 1

23
Variable overhead costs	82800	=72000*1.15
Fixed overhead costs	98000
Manufacturing overhead budget	180800
$180,800 is correct option
24
Standard cost of direct materials (per deck)	875	=500*1.75
$875 is correct option
25
Direct Labor Rate Variance	$1,500 favorable	=6000*(14.25-14.5)
$1,500 favorable is correct option
26
Direct Materials Quantity Variance	$11.50 unfavorable	=2.3*(55-100*0.5)
$11.50 unfavorable is correct option