(Solution) 106. Information On Sunny Company's Direct Labor Costs For The Month Of April Is As Follows: Actual Direct Labor-hours......................... | Snapessays.com

(Solution) 106. Information on Sunny Company's direct labor costs for the month of April is as follows: Actual direct labor-hours.........................

Hi, I have some accounting questions that I need help explaining, thanks!106. Information on Sunny Company's direct labor costs for the month of April is as follows:


Actual direct labor-hours.






Standard direct labor-hours.






Total direct labor payroll.






Standard direct labor rate per hour.




$ 6.40


What is the company's direct labor rate variance?


A. $34,500 (unfavorable)


B. $40,000 (unfavorable)


C. $42,000 (unfavorable)


D. $42,000 (favorable)


E. none of the above


104. The Vallejo Company expects purchases for 2016 to be $160,000 in the first quarter,


$240,000 in the second quarter, $190,000 in the third quarter, and $300,000 in the last


quarter. All purchases are made on credit. 90% of purchases are paid for in the quarter


purchased; 10% are paid for in the quarter following purchase. Other cash expenses paid


each quarter are: taxes, $40,000; wages, $120,000; rent, $16,000; interest, $4,000; and


miscellaneous, $3,000. If the company plans to pay off $20,000 in notes in the fourth


quarter of 2016, planned cash disbursements in the fourth quarter will be:


A. $472,000


B. $473,000


C. $453,000


D. $492,000


E. none of the above


103. Crandell Co. forecasts monthly production of 20,000 units at a cost of $20 each. The cost


breakdown is as follows:






2 hours per unit at $4 per hour






3 pounds per unit at $2 per pound


Fixed overhead.




$2 per direct labor hour


Variable overhead.


..$1 per direct labor hour


In September, Crandell produced 18,000 units at a cost of $397,500. If payroll for


September amounted to $150,000 at an hourly rate of $5, compute the labor budget




A. $6,000 favorable


B. $6,000 unfavorable


C. $30,000 favorable


D. $24,000 unfavorable


E. none of the above


99. The Roger Company is planning to purchase a new machine at a cost of $660,000, which


will depreciate on a straight-line basis over a 10-year period with $60,000 salvage value


and a full year's depreciation taken in the year of acquisition. The new machine is


expected to produce average annual before-tax net cash inflows of $132,000 a year in


each of the next 10 years. The tax rate is 40%. The unadjusted rate of return would be:


A. 12%.


B. 13.8%.


C. 13.4%.


D. 12%.


E. none of the above


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This question was answered on: May 23, 2022

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May 23, 2022





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