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Standard costing And process costing

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1. Azzurra Company manufactures computer chips used in aircraft and automobiles. Manufacturing overhead at Azzurra is applied to production on the basis of standard machine-hours. Which overhead variance(s) at Azzurra would be affected in an unfavorable manner if fire and theft insurance rates increase by 25% unexpectedly during the period?
a. variable overhead spending variance
b. variable overhead efficiency variance
c. fixed overhead budget variance
d. fixed overhead volume variance

2. The Assembly Department started the month with 83,000 units in its beginning work in process inventory. An additional 334,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?
a. 417,000
b. 285,000
c. 451,000
d. 383,000

3. Lawton Company produces canned tomato soup in a single processing department and has a process costing system in which it uses the weighted-average method. The company sold 250,000 units in the month of January. Data concerning inventories follow in units: Inventory at January 1: Work in process None; Finished goods 75,000; Inventory at January 31: Work in process (conversion 75% complete) 16,000; Finished goods 60,000; What were the equivalent units for conversion costs for January?
a. 235,000
b. 247,000
c. 251,000
d. 253,000

4. Kew Company uses the weighted-average method in its process costing system. The company had 3,000 units in work in process at April 1 that were 60% complete with respect to conversion cost. During April, 10,000 units were completed. At April 30, 4,000 units remained in work in process and they were 40% complete with respect to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April?
a. 9,000
b. 9,800
c. 10,000
d. 11,000

5. The following data were taken from the accounting records of the Mixing Department of Kappa Company which uses the weighted-average method in its process costing system: Beginning work in process inventory: Cost $19,000; Units 30,000 units; Percentage completion with respect to materials 100%; Percentage completion with respect to conversion 60%; Units completed and transferred out 82,000 units; Cost per equivalent unit: Material $1.50; Conversion $0.75; The cost of units transferred out was:
a. $184,500
b. $149,500
c. $167,500
d. $145,000

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