Thomas Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the period totaled 53,500 pounds in the manufacture of 10,900 finished units.An examination of Thomas' payroll records revealed that the company worked 22,000 labor hours (cost = $319,000) during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of $14.80 per hour. Assume that the company computes variances at the earliest point in time.Thomas' direct-labor rate variance was
A. $2,960F.
B. $6,600F.
C. $6,600U.
D. $2,960U.
E. None of the answers is correct.
Answer: B
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All of the following are conditions for an ordinary annuity due except
A) ?periodic cash flows must be equal in amount. B) ?the time periods between the cash flows are the same length. C) ?the future value is equal to the present value. D) ?interest is compounded at the end of each time period.
Which of the following is not a way a company can achieve a low-cost position
a. economies of scale b. production efficiency c. customer service d. outsourcing
If the internal rate of return (IRR) of an investment is lower than the hurdle rate, the project should be rejected.
Answer the following statement true (T) or false (F)
Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year, actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:
A. $138,350 B. $164,023 C. $148,350 D. $125,130