# ACCOUNTING

32) If fixed costs are \$1,000, variable cost per unit is \$2.00 and budgeted units of output is 1,000 unites, what is the budgeted production costs?
a. \$3,000
b. \$4,000
c. \$0
d. \$2,000
33) Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is \$4.00 per square foot from the supplier. Delivery costs are \$0.25 per board foot. Carpenters’ wages are \$25.00 per hour. Payroll costs are \$3.60 per hour and benefits are \$5.00 per hour. How much is the direct labor cost standard (per hour)?
34) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:
Direct materials: 3 pounds per unit; \$4 per pound
Direct labor: 4 hours per unit; \$15 per hour
During the first quarter, Emerald produced 5,000 units of this product. Actual direct materials and direct labor costs were \$65,000 and \$325,000, respectively.
For the purposes of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5,000 units.
35) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:
Direct materials: 1 pound per unit; \$12 per pound
Direct labor: 4 hours per unit; \$15 per hour
Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were \$98,000.
Calculate the direct materials cost variance.
36) Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of \$32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling \$18,000. The actual labor cost was \$36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?
37) Elite Brands Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
Production volume 6,000 units
Estimated direct labor hours 600 hours
At the end of the year, actual data were as follows:
Production volume 4,000 units