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5. 6. At Johnson Lighting, the number of mosaic table lamps to be produced in December is 20,000. Each lamp requires 2 hours of hands-on labor, and the standard rate of pay for these laborers is $18 per hour. What will be the budgeted direct labor cost at Johnson for the month of December? a. $720,000 b. $360,000 c. $620,000 At Jackson Co. the budgeted direct labor hours for the 2nd quarter are 4,250 hours. Variable overhead is budgeted to be $2.54 per hour and fixed overhead is budgeted to be $18,400. What is the total budgeted overhead cost for the 2nd quarter? a. $18,400 b. $10,795 c. 29,195 Wasteful usage of variable overhead costs such as indirect materials and utilities-i.e., misplacing or spilling indirect materials or leaving machines running and doors to refrigerated areas open- will cause which of the following variances to be unfavorable? a. Materials Price Variance b. Materials Quantity Variance c. Variable Overhead Rate (Spending) Variancel d. Variable Overhead Efficiency Variance If the labor mix at a company is changed by placing new untrained personnel in positions formerly held by senior technicians, the expected impact on the labor variances would be: a. The labor rate variance would be more favorable, but the labor efficiency variance would be less favorable. b. The labor rate variance would be less favorable, but the labor efficiency variance would be more favorable. c. Both the labor rate and labor efficiency variances would be more favorable. d. Both the labor rate and labor efficiency variances would be less favorable.

3. At Johnson Llohting, the number of mosalc table lamps to be produced in December is 20,000 . Each lamp requires 2 hours of hands-on labor, and the standard rate of pay for these laborers is $18 per hour. What will be the budgeted direct labor cost at Johnson for the month of December? a. $720,000 b. $360,000 c. $620,000 4. At Jackson Co. the budgeted direct labor hours for the 2nd quarter are 4,250 hours. Variable overhead is budgeted to be $2.54 per hour and fixed overhead is budgeted to be $18,400. What is the total budgeted overhead cost for the 2nd quarter? a. $18,400 b. $10,795 c. 29,195 5. Wasteful usage of variable overhead costs such as indirect materials and utilities-1.e., misplacing or spilling indirect materials or loaving machines running and doors to refirigerated areas openwill cause which of the following variances to be unfavorable? a. Materials Price Variance b. Materials Quantily Variance c. Variable Overhead Rate (Spending) Variancel d. Variable Overhead Efficiency Variance 6. If the labor mix at a company is changed by placing new untrained personnel in positions formerly held by senior techniclans, the expected impact on the labor variances would be: a. The labor rate varlance would be more favorable, but the labor efficiency variance would be less favorable. b. The labor rate variance would be less favorable, but the labor efficiency variance would be more tavorable. c. Both the labor rate and labor eficiency variances would be more favorable. d. Both the labor rate and labor efficlency varlances would be less favorable

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