39. The following company information is available:
Direct materials used for production
Standard quantity for units produced
Standard cost per gallon of direct material
36,000 gallons
34,400 gallons
$6.00
Actual cost per gallon of direct material
$6.10
The direct materials quantity variance is:
a) $10,000 unfavorable
b) $13,200 unfavorable
c) $13,200 favorable
d) $3,600 unfavorable
e) $9,600 unfavorable
40. Jamesway Corporation has two separate divisions that operate as profit centers.
The following information is available for the most recent year:
Sales (net)
Salary expense
Cost of goods sold
White Division
$200,000
28,000
100.000
Grey Division
$400,000
48,000
159,000
The White Division occupies 20,000 square feet in the plant. The Grey Division occupies
30,000 square feet. Rent is an indirect expense and is allocated based on square
footage. Rent expense for the year was $50,000.
Gross profit for the White and Grey Divisions is:
White
Grey
a) $72,000
$193,000
b) $172,000
$352.000
c) $100,000
$241,000
d) $52,000
$163,000
e) $72,000 $163,000
41. Bartels Corp. produces woodcarvings. It takes two hours of direct labor to produce a carving.
Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings
and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor
cost variance for August?
a) $10,376 unfavorable
b) $2,104 unfavorable
c) $2,104 favorable
d) $12,480 unfavorable
e) $12,480 favorable
42. Direct and indirect costs are considered to be under what classification?
a) Behavior
b) Function
c) Traceability
d) Relevance
e) Controllability
