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Problem 1: On October 1, 20x3, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at ?3 per gallon. Fifty thousand gallons were delivered on December 15, 20x3, and the remaining 50,000 gallons were delivered on January 15, 20x4. Payment terms were: 50% due on October 1, 20x3, 25% due on first delivery, and the remaining 25% due on second delivery. What amount of revenue should Acme recognize from this sale during 20x3?
Option 1: 150,000 Option 2: 225,000 Option 3: 75,000 Option 4: 300,000
Compute the price and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest All-Star Fender's managers have been making trade-offs? Explain.
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