Vacheron constantin manufactures luxury watches. During the last year, the company manufactured 3,000 units, using 1,500 kilograms of raw materials. The company purchased 4,000 kilograms of raw materials for $1,200,000. According to the standard cost, each watch should require 0.4 kilograms of raw materials, at a cost of $350 per kilogram. What is the direct material price variance?

1 point

$75,000F

$75,000U

$200,000F

$200,000U

Clear selection

A total of 7,000 kilograms of a raw material was purchased at a total cost of $16,800. The material price variance was $2,800 favorable. The standard price per kilogram for the raw material must be:

1 point

$1.60

$2

$2.80

$3.20

Audemars Piguet produces and sells 10 units of Royal Oak each month. Each unit of Royal Oak sells for $24,000 and has a contribution margin of $12,000. It is estimated that if Royal Oak is discontinued, $110,000 of the $140,000 in fixed costs charged to Royal Oak could be eliminated. These data indicate that if Royal Oak is discontinued, overall company net operating income should:

1 point

Increased by 10,000

Decreased by $10,000

Increased by $20,000

Decreased by $20,000

Clear selection

John C. Williams currently works as a Junior Data Analyst at a Local company but is thinking of quitting his job to attend Stanford University next semester. Which of the following would be considered an opportunity cost in this decision?

1 point

Tuition fees

John's lost wages

Student housing cost

All of the above.

A total of 7,880 kilograms of a raw material was purchased at a total cost of $31,910. The materials price variance was $1,680 favorable. The standard price per kilogram for the raw material must be:

1 point

$0.20

$4.26

$4.20

$3.39

T Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:

1 point

$22,000 Favorable

$11720 Favorable

$10,260 Unfavorable

$17,340 Unfavorable

Accepting a special order will decrease overall net operating income if the expenses of the special order exceeds:

1 point

The contribution margin on the order.

The incremental costs associated with the order.

The variable costs associated with the order.

The sunk costs associated with the order

Answer rating: 100% (QA)

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