Share
Explore BrainMass

# Material Quantity Variance, Activity Cost

Question 47
During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of \$2.50 per pound. If there was a favorable usage variance of \$25,000 for September, the actual quantity of materials used must have been
210,000 pounds.
190,000 pounds.
105,000 pounds.
95,000 pounds.

Question 48
Zipp Company manufactures two products (X and Y). The overhead costs (\$84,000) have been divided into three cost pools that use the following activity drivers:

Product Number of Setups Machine Hours Packing Orders
X 10 500 75
Y 10 2,000 175

Cost per pool \$9,000 \$60,000 \$15,000

What is the allocation rate per packing order using activity-based costing?
\$15,000
\$60
\$7,500
\$200

Question 49 If a support department's costs were budgeted to be \$150,000 and actual costs incurred by the support department were \$200,000, the total amount of the support department's costs that should be allocated to other departments is
\$350,000.
\$200,000.
\$150,000.
\$50,000.

#### Solution Summary

The solution computes material quantity variance, activity cost for a given scenario.

\$2.19