Question 1.

Calculating Direct Material, Direct Labor, Variable Overhead Variances [LO 9-3, 9-4, 9-5] Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.60 lbs. $ 1.70 per lb. $ 2.72 Direct labor 1.60 hrs. $ 14.00 per hr. 22.40 Variable manufacturing overhead (based on direct labor hours) 1.60 hrs. $ 1.20 per hr. 1.92 Fixed manufacturing overhead ($312,500.00 125,000.00 units) 2.50 Barley Hopp had the following actual results last year: Number of units produced and sold 130,000 Number of pounds of clay used 228,200 Cost of clay $ 365,120 Number of labor hours worked 175,000 Direct labor cost $ 2,975,000 Variable overhead cost $ 250,000 Fixed overhead cost $ 330,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) 2. Calculate the direct labor rate, efficiency, and total spending variances for Barley Hopp. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable and "U" for unfavorable.) 3. Calculate the variable overhead rate, efficiency, and total spending variances for Barley Hopp.

A project has the following estimated data: Price = $54 per unit, variable costs = $34 per unit, fixed costs = $17,000; required return = 15 percent, initial investment = $30,000, life = five years a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) c. What is the financial break-even quantity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32161.] a. Accounting break-even quantity Cash break-even quantity C. Financial break-even quantity d. DOLWhich is TRUE of a shearing process? a. The required load is above the yield strength of the material b. Zero clearance is desired between the blade and the cutting table C. The process is commonly used for really thick slabs of metal None of the above are true 10. Which of the following is NOT an alloy? a. Brass b. Bronze c. Copper d. Invar 11. Which of the following polymers structures exhibits the highest stiffness? a. Branched b. Linear C. Networked d. Polymer structure does not affect mechanical properties 12. The metal removal in milling of cast iron is 800,000 mm/min. The material property K.= 1200 N/mm). About how much power is consumed in the cut? a. 960 KW b. 16 W C. 16 KW d. None of the above 13. Which of the following is not found sand casting? a. Cope b. Core C. Sprue d Shear plane 14. Your grandmother has $300,000 to set up a trust fund for you. If she wants want you to get $20,000 per year forever, what interest rate must the money earn (annual rate, compounded annually)? a. 0.07% b. 0.15% C. 6.67% d. None of the above 15. Which law refers to the rate at which IC manufacturers must improve their processes? a. Ohm's Law b. Hooke's Law c. Moore's Law d. Murphy's Law 16. What is interest rate i used in the economics calculations when the bank charges 16% per year compounded quarterly? a. 0.0094% b. C. 1.333% d. None of the above MEGR 2180 August 2018 Page 4steve runs a mail-order business for gym equipment. Annual demand for the Trico Flexers is $16900 units. The annual holding cost per unit is $6.40 and the cost to place an order is $69 What is the economic order quantity (EOQ)? Show calculations. H 2 The manufacturer of Trico Flexers has agreed to offer steve a price discount of $6.90 per unit if he buys 1300 units. Assuming demand is still 16900 units. How many units should steve order at a time? Compare to first question about EOQ or should steve buy 1300? Explain your answer and show calculations. steve operates 5 days per week, 52 weeks per year. The supplier's lead time is 3 labor days. At what level of the stock steve has to place the order? explain whyand Show calculations