Consider the budget information for Bert and Ernie Design firm: Professional labor $1,000,000 Administrative labor 200,000 Lease expense 50,000 Design equipment depreciation 25,000 Samples and books 10,000 Utilities 20,000 Professional hours 100,00 . hours Number of rooms redone 2,00 . rooms Bert and Ernie decide there are two cost pools, design support, which is assigned to jobs based on the
number of rooms redone, and facilities costs, which is assigned to jobs based on the number of professional labor hours. The design support cost pool includes design equipment depreciation and samples and books. The lease expense and utilities are considered facilities costs. What is the budgeted rate per cost driver for facilities costs?
a. $17.50
b. $1.05
c. $.70
d. $37.50
c
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Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $72,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was:
A. $126,000. B. $72,000. C. $54,000. D. $96,000.
Which of the following types of process is correctly described?
A. A project process is used when the product is unique and typically produced one at a time to the customer’s specifications. B. A job-shop process is used when the processing requirements are identical for each product. C. A continuous process is used when the production process runs from beginning to end of each working day. D. A flexible process is used when the same resources and equipment can be used to produce entirely different products, ranging from refining oil to producing automobiles.
Which of the following is an employee association?
A. National Education Association B. United Steelworkers C. Office and Professional Employees International Union D. United Brotherhood of Carpenters
The Carolina Rubber Products Company completed the flexible budget analysis for the second quarter, which is given below
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units 12,840 0 12,840 840 F 12,000 Sales Revenue $62,740 $1,290 U $64,030 $3,970 F $60,060 Variable Costs 27,530 590 U 26,940 $1,740 U 25,200 Contribution Margin $35,210 $1,880 U $37,090 $2,230 F $34,860 Fixed Costs 34,240 180 U 34,060 $0 34,060 Operating Income/(Loss) $970 $2,060 U $3,030 $2,230 F $800 Which of the following would be a correct analysis of the sales volume variance for sales revenue? A) increase in sales price per unit B) increase in sales volume C) increase in variable cost per unit D) increase in fixed costs