Question: Could anyone help me please with these questions? Sarrazin Corporation is in the process of preparing its annual budget. The following and ending inventory levels
Sarrazin Corporation is in the process of preparing its annual budget. The following and ending inventory levels are planned for the year. Each unit of finished goods requires 8 grams of raw material. The company plans to manufacture 590,000 units during the year. How much of the raw material should the company purchase during the year? a. 4, 720,000 grams b. 4, 700,000 grams c. 4, 730,000 grams d. 4, 740,000 grams If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur? a. Favorable labor efficiency variance. b. Favorable labor rate variance. c. Unfavorable labor efficiency variance. d. Unfavorable labor rate variance. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from: a. labor efficiency problems. b. machine efficiency problems material. c. the purchase and use of higher than standard quality material. d. the purchase and use of lower than standard quality material. United Industries manufactures a number of products at its highly automated factory. The products are very popular, with demand far the factory's capacity. To maximize profit, management should rank products based on their: a. Gross margin b. Selling price c. Contribution margin d. Contribution margin per unit of the constrained resource Consider a decision facing a company of either accepting or rejecting a special offer for one of its products. A cost that is relevant is: a. direct materials b. variable overhead c. fixed overhead that will be avoided if the special offer is accepted. d. common fixed overhead that will continue if the special offer is not accepted
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