An unfavorable direct labor cost variance occurs when a company:
Group of answer choices
Pays more wages per hour than the standard rate.
Incurs more direct labor costs per unit than the standard direct labor cost per unit.
Hires employees at a wage rate less than the standard rate.
Uses more hours per unit of output than it should have used.
A direct labor rate standard represents:
Group of answer choices
The wage rate per hour that should be paid for the use of direct labor in the production process.
The total labor cost used in the production process divided by the estimated number of output units.
The number of hours that should be used to produce one unit of output or product.
The cost of direct labor that should be incurred to produce one unit of output or product.
Which of the following budgets provides data for different levels of sales volume?
Group of answer choices
Flexible budget
Static budget
Master budget
Sales budget
Infinity Inc. has provided the following projected sales units for the next quarter:
First month Second month Third month
Projected sales units 20,000 25,000 30,000
Desired ending inventory is determined to be 12% of the next month’s projected sales.
What would be the budgeted production units during the second month of the quarter?
Group of answer choices
28,600 units
31,600 units
26,400 units
25,600 units
Iota Inc. prepared its static budget for producing 15,000 units of one of its products for the next quarter using the following cost data:
Direct materials costs per unit $8
Direct labor costs per unit $5
Variable Manufacturing overhead costs per unit $4
Fixed costs for the quarter $20,000
A flexible budget for 20,000 units of production would show:
Group of answer choices
Direct material costs of $120,000, direct labor costs of $75,000, variable manufacturing costs of $60,000 and fixed costs of $15,000
Direct material costs of $160,000, direct labor costs of $100,000, variable manufacturing costs of $80,000 and fixed costs of $20,000
Direct material costs of $120,000, direct labor costs of $75,000, variable manufacturing costs of $60,000 and fixed costs of $20,000
Direct material costs of $160,000, direct labor costs of $100,000, variable manufacturing costs of $80,000 and fixed costs of $26,667
The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs:
Variable Fixed
Manufacturing costs per unit $12.50 $5.60
Selling and administrative costs per unit $5.00 $2.00
Which of the following statements is true?
Group of answer choices
The difference in net income cannot be determined.
Net income under variable costing will be $56,000 less than net income under absorption costing.
Net income under absorption costing will be $76,000 more than under variable costing.
Net income will be the same under both variable and absorption costing.
Nathan Inc. provides the following cost information for producing 12,000 units of inventory during the current month:
Direct materials $56,000
Direct labor $78,000
Variable manufacturing overhead $28,000
Fixed manufacturing overhead $30,000
Variable Selling and Administrative Costs $28,000
Fixed Selling and Administrative Costs $15,000
The product costs per unit under variable costing would be:
Group of answer choices
$15.50 per unit
$19.58 per unit
$13.50 per unit
$16 per unit
PreviousNext
Which of the following line items will not be found in the absorption costing income statement?
Group of answer choices
Variable manufacturing and non-manufacturing costs
Gross profit
Contribution margin
Fixed manufacturing costs
PreviousNext
Philip Inc. has provided the following sales and cost data:
Sales per unit $80
Variable cost per unit $30
Total Fixed costs $280,000
Units sold 12,000
How much will operating income change if sales increase by 7,200 units?
Group of answer choices
$576,000 increase
$360,000 increase
$400,000 increase
$360,000 decrease
Jason Inc. shows the following manufacturing costs for the first four months of the year:
Production in Units Total Costs
January 2,500 $33,750
February 1,800 $29,900
March 3,000 $36,500
April 2,600 $34,300
Using the high-low method, determine the total fixed costs.
(Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.)
Group of answer choices
$15,500
$16,500
$20,000
$30,300
Within a relevant range, when the level of activity increases, ________.
Group of answer choices
variable costs in total remain the same
fixed costs in total increase as well
fixed costs per unit remain the same
variable costs per unit remain the same