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• Question 25 Crisper, Inc. plans to sell 80,000 bags of potato
chips in June, and each of these bags requires five potatoes.
Pertinent data includes:
• Question 26 At annual sales of $900,000, the Ebo product has
the following unit sales price and costs:
• Question 27 Which of the following is a disadvantage of
participative budgeting?
• Question 28 For the current period production levels,
Woodwork Co. budgeted 11,000 board feet of production and
purchased 15,000 board feet. The material cost was budgeted at
$7 per foot. The actual cost for the period was $8.50 per foot.
What was Woodwork’s material price variance for the period?
• Question 29 In the past, four direct labor hours were required
to produce each unit of product Y. Material costs were $200 per
unit, the direct labor rate was $20 per hour, and factory overhead
was 3 times direct labor cost. In budgeting for next year,
management is planning to outsource some manufacturing
activities and to further automate others. Management estimates
that these plans will reduce labor hours by 25%, increase the
factory overhead rate to 3.6 times direct labor costs, and increase
material costs by $30 per unit. Management plans to manufacture
10,000 units. What amount should management budget for cost of
goods manufactured?
• Question 30 A company produces widgets with budgeted
standard direct materials of 2 pounds per widget at $5 per pound.
Standard direct labor was budgeted at 0.5 hour per widget at $15
per hour. The actual usage in the current year was 25,000 pounds
and 3,000 hours to produce 10,000 widgets. What was the direct
labor usage variance?
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ACC 544 Week 1 Coso Framework (2 Papers)
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