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Multiple Choice

MA_U10_34-38: please see attachment for problems.

34. Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
The cash collections in September from accounts receivable are _______.

$240,000
$134,400
$192,000
$168,000

35. The following data is given for the Walker Company:
Budgeted production 26,000 units
Actual production 27,500 units
Materials:
Standard price per ounce $6.50
Standard ounces per completed unit 8
Actual ounces purchased and used in production 228,000
Actual price paid for materials $1,504,800
Labor:
Standard hourly labor rate $22 per hour
Standard hours allowed per completed unit 6.6
Actual labor hours worked 183,000
Actual total labor costs $4,020,000
Overhead:
Actual and budgeted fixed overhead $1,029,600
Standard variable overhead rate $24.50 per standard labor hour
Actual variable overhead costs $4,520,000
Overhead is applied on standard labor hours.
The direct material price variance is _______.
22,800U
22,800F
52,000U
52,000F

36. The following data relate to direct labor costs for the current period:
Standard costs 9,000 hours at $5.50
Actual costs 8,750 hours at $5.75

What is the direct labor rate variance?
$2,250.00 unfavorable
$2,187.50 unfavorable
$1,438.00 favorable
$1,375.00 favorable

37.
Standard Actual
Material Cost Per Yard $2.00 $2.04
Standard Yards per Unit 5 yards 4.75 yards
Units of Production 9,450

Calculate the Total Direct Materials cost variance using the above information.
$2,929.50 Unfavorable
$2,929.50 Favorable
$3,780.00 Unfavorable
$3,562.50 Favorable

38. Which of the following is not a reason for a direct materials quantity variance?
Malfunctioning equipment
Purchasing of inferior raw materials
Material requiring rework
Spoilage of materials

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34. Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.
The cash collections in September from accounts receivable are _______.

$240,000
$134,400
$192,000
$168,000

The credit sales are 240,000X0.8 = 192,000
Of these 70% will be collected in September. The collection from accounts receivable us 192,000X0.7 = ...

Solution Summary

The solution explains some multiple choice questions relating to managerial accounting

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