Question 2
Norio Manufacturing uses powdered plastics (PPS) to manufacturea high-pressure board used in a digital equipment product, Flex 10.Information concerning its operation in June is as follows:
| | | | |
| Budgeted units of Flex 10 for June | | 6,800 | | |
| Budgeted usage of PPS | | 61,200 | pounds | |
| Actual number of units of Flex 10 manufactured | | 5,800 | | |
| PPS purchased | | 72,960 | pounds | |
| PPS used | | 57,000 | pounds | |
| Total actual cost of PPS used | $ | 368,220 | | |
| Direct materials usage variance | $ | 36,480 | unfavorable | |
|
Assume that Norio does not maintain an inventory of materials,so that the amount of materials used is equal to the amount ofmaterials purchased. The cost of PPS in the flexible budget for thenumber of units manufactured this period (rounded to nearestdollar) is:
Multiple Choice
$396,720.
$392,160.
$554,496.
$465,120.
$516,800.
Lucky Company's direct labor information for the month ofFebruary is as follows:
| | | |
| Actual direct labor hours worked (AQ) | | 57,600 | |
| Standard direct labor hours allowed (SQ) | | 60,000 | |
| Total payroll for direct labor | $ | 720,000 | |
| Direct labor efficiency variance | $ | 27,840 | |
|
The total standard direct labor cost allowed for February,rounded to the nearest dollar, was:
Multiple Choice
$668,160.
$682,560.
$696,000.
$710,400.
$720,000.
