Woodhead Inc. manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. Its standard cost per unit produced is $37.45. During the year, the company produced and sold 24,400 units at a price of $47.40 per unit and its selling and administrative expenses totaled $92,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year:Materials price variance$8,760FMaterials quantity variance$550ULabor rate variance$27,885ULabor efficiency variance$17,200FFixed manufacturing overhead budget variance$17,400FFixed manufacturing overhead volume
variance$18,900FWhen the company closes its standard cost variances, the Cost of Goods Sold will increase (decrease) by:
A. ($36,300)
B. ($33,825)
C. $33,825
D. $36,300
Answer: B
You might also like to view...
In a ________, the manager is responsible for generating revenues and controlling costs
A) cost center B) profit center C) revenue center D) transfer pricing center
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, ________, or fall within a given price range.
A. are distributed through the same type of outlets B. are made of similar components C. made from the same formulations D. have one SKU number E. require high levels of R&D
The Delphi method, panel consensus forecasting, and market surveys are all qualitative forecasting methods, but only market surveys do NOT use experts
Indicate whether the statement is true or false.
The scope of an EIS:
A) does not apply to psychological effects. B) does not apply to the urban environment. C) is narrowly construed. D) applies to a broad range of environmental effects.