Use the following to answer questions36-38: Chicken Nuggets, LLC, provides chicken nuggets to fast food...Use...

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Accounting

Use the following to answer questions36-38:
Chicken Nuggets, LLC, provides chicken nuggets to fast foodrestaurants. The standard cost card for chicken nuggets indicateseach nugget takes two ounces of chicken meat at $0.03 per ounce, 30seconds of direct labor at $12.00 per hour, and 30 seconds ofoverhead at $6.00 per hour, for a total standard cost of $0.21 pernugget. Current production cost for 200,000 nuggets show materialcost of $11,024 for 440,960 ounces of chicken at $0.025 per ounce;$19,380 for 1,675 hours of direct labor at $11.57 per hour; and$10,050 of overhead applied for 1,675 hours at $6.00 per hour.
Legend: U = Unfavorable F = Favorable (Include U or F, after theamount)
36. (10) The direct material quantity(usage) variance is calculated to be ___U_?

37. (10) The direct labor efficiencyvariance is calculated to be ?

38. (10) The direct labor ratevariance is calculated to be ?
39. A cost that is often overlooked, because it is not recordedon the books, is called a (an):
            A)sunk cost
            B)fixed cost
           C) missing cost
            D)opportunity cost
            E)variable cost

Answer & Explanation Solved by verified expert

3.6 Ratings (613 Votes)

All working forms part of the answer Working for Variances data Actual Cost and Standard cost for 200000 nuggets Actual DATA for 200000 units Quantity AQ Rate AR Actual Cost Direct Material 440960 0025 1102400 Direct labor 1675 1157 1938000 Variable Overhead See Answer

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In: AccountingUse the following to answer questions36-38: Chicken Nuggets, LLC, provides chicken nuggets to fast food...Use the following to answer questions36-38: Chicken Nuggets, LLC, provides chicken nuggets to fast foodrestaurants. The standard cost card for chicken nuggets indicateseach nugget takes two ounces of chicken meat at $0.03 per ounce, 30seconds of direct labor at $12.00 per hour, and 30 seconds ofoverhead at $6.00 per hour, for a total standard cost of $0.21 pernugget. Current production cost for 200,000 nuggets show materialcost of $11,024 for 440,960 ounces of chicken at $0.025 per ounce;$19,380 for 1,675 hours of direct labor at $11.57 per hour; and$10,050 of overhead applied for 1,675 hours at $6.00 per hour.Legend: U = Unfavorable F = Favorable (Include U or F, after theamount)36. (10) The direct material quantity(usage) variance is calculated to be _____U___? 37. (10) The direct labor efficiencyvariance is calculated to be ________? 38. (10) The direct labor ratevariance is calculated to be ________?39. A cost that is often overlooked, because it is not recordedon the books, is called a (an): A)sunk cost B)fixed cost C) missing cost D)opportunity cost E)variable cost