A) Inc. used 12,000 direct labor hours in its production process at an actual rate of $16.50 per hour and produced 15,000 units of product. The planned production for the period was 17,000 units. The standard for direct labor hours was 0.7 hours per unit of production and the standard rate was $18.00 per hour.

Compute the direct labor rate variance.

$9,000 unfavorable

$18,000 unfavorable

-$27,000 favorable

-$18,000 favorable

B) Beulah Inc. manufactures small fitting parts to heavy duty machineries. The company has provided the following standard cost data to prepare its flexible budget for the first quarter of the current year:

	Price or rate standard	Quantity or time standard
Direct material	$15 per lb.	1.3 lbs.
Direct labor	$20 per hour	2.5 hours

Beulah produced 5,000 units of parts during the quarter and the actual material and labor cost data are gathered below:

	Actual price or rate	Actual quantity or time
Direct material	$16.50 per lb.	1.1 lbs.
Direct labor	$18 per hour	3 hours

Compute the following in relation to the direct materials and state whether the variances are "favorable" or "unfavorable":

A. Actual direct material cost per unit: $ per unit

B. Standard direct material cost per unit: $ per unit

C. Direct material price variance: $ ; Indicate favorable or unfavorable:

D. Direct material quantity variance: $ ; Indicate favorable or unfavorable:

E. Direct material cost variance: $ ; Indicate favorable or unfavorable:

Compute the following in relation to the direct labor and state whether the variances are "favorable" or "unfavorable":

F. Actual direct labor cost per unit: $ per unit

G. Standard direct labor cost per unit: $ per unit

H. Direct labor rate variance: $ ; Indicate favorable or unfavorable:

I. Direct labor efficiency variance: $ ; Indicate favorable or unfavorable:

J. Direct labor cost variance: $ ; Indicate favorable or unfavorable:

C) Jordan Inc. had $620,000 in invested assets, sales of $680,000, operating income of $150,000, and a desired minimum return on investment of 15%.

Compute the return on investment (ROI) for Jordan. (round the percentage to two decimal points. E.g., 10.52%).

answer choices

22.06%

24.19%

85.00%

110.00%

Answer rating: 100% (QA)

A Direct labor rate variance Answer 18000 Favorable ... View the full answer