Reference no: EM132796503

Questions -

Q1. Susan Jewelry manufactures jewelry. It applies overhead based on direct labor hours. In October, Susan is planning to make 560rings, 400 bracelets, and 210 pendants. The company expects the total manufacturing overhead for the year would be $3525000and that total direct labor hours for the year would be 75000. Actual overhead incurred for October was $295920. Each ring requires 6.00 hours of labor to manufacture; each bracelet requires 5.5 hours of labor to manufacture, and each pendant requires 4hours of labor to manufacture. What is the standard overhead cost per ring?

Q2. Sandhill Creations purchased 9900 feet of copper tubing at a price of $2.30 per foot and used 9600 feet during the period. The standard quantity allowed for the units produced is 9400 and the standard price of the copper tubing is $3.30 per foot. What is Sandhill Creations' direct materials quantity variance for the period?

Q3. Blossom Company manufactures patio umbrellas. The direct labor standard for each umbrella is 1.25 direct labor hours at a standard rate of $12 per hour. During June, Blossom used 38760 direct labor hours to produce 32300 umbrellas. Blossom's direct labor payroll totaled $430700. What is Blossom's direct labor efficiency variance for November?

Q4. Carla Vista Dover is a scout for a Major League Baseball team based in Phoenix, Arizona. Carla Vista needs to travel to Los Angeles, California on June 1 to perform a variety of professional functions prior to the team travelling to Los Angeles to play. If Carla Vistaflies, he could catch a 6 a.m. flight on June 1. In order to perform all of his professional responsibilities, Carla Vista will need to spend the night and catch a flight on June 2 to return to Phoenix. If Carla Vista flies, he will need to rent a car for $41 per day. To cover meals and other incidental expenses, Carla Vista will receive $50 per day (per diem) for each day he works out of town. Flights between Phoenix and Los Angeles can be purchased for $98 one way.

Phoenix is approximately 350 miles from Los Angeles, a 6-hour drive at speed limits permitted on the freeways connecting the two cities. If he drives from Phoenix to Los Angeles, Carla Vista would need to leave the afternoon of May 31 and would be reimbursed $0.50 per mile. He would need to spend 2 nights in a hotel, the night of May 31 and the night of June 1. He would return to Phoenix by car on June 2. The hotel used by the team charges $150 per night. What is the relevant cost of flying?

Q5. Ivanhoe Forge manufactures saddles for show horses. The company has received a special order for 365 saddles for an international competition. Each of these saddles would include the specialized logo of the competition. Last year Ivanhoe produced 785 saddles, and the company has the capacity to produce 1150 saddles per year. Ivanhoe's saddles normally sell for $725 each, but the special offer is for $253675 ($695 per saddle). The controller has provided information to management that estimates the variable cost per saddle is $460; fixed manufacturing overhead is $85/saddle. Of the fixed costs assigned to this special order, $16150 is for the specialized logos, the remainder is attributable to costs that will be incurred regardless of whether the special order is produced. What is the operating income generated by the special order?