Which of the following is one of the reasons why companies

Week 8 HomeworkMultiple choice (5 pts each) (highlight or clearly mark your answer)1) Which of the following is one of the reasons why companies use standard costs?a. to enhance customer loyaltyb. to set performance targetsc. to share best practices with other companiesd. to ensure the accuracy of the financial records2) Which of the following does the efficiency variance measure?a. the difference between the quantity used by the company and the quantity used by its competitorsb. the change in quantities used over timec. the difference between actual and standard quantity usedd. how quickly materials are processed into finished goods3) The production manager of a company was experiencing a high defect rate on the assembly line, which wasslowing production and causing wastage of valuable materials. He decided to recruit some highly skilledproduction workers from another company to bring down the defect rate, but was worried that the higher wagesof these workers might negatively affect operating income. This situation would have produced a(n):a. unfavorable direct materials cost variance.b. unfavorable direct labor cost variance.c. unfavorable direct labor efficiency variance.d. unfavorable direct materials efficiency variance.4) Which of the following is used to charge the cost of direct labor to the production?a. Debit for standard quantity for actual production times standard cost per hourb. Credit for standard quantity usage for actual production times actual cost per hourc. Debit for actual quantity times standard cost per hourd. Credit for standard quantity for actual production times standard cost per hour5) Brad, one of the managers of a multi­national company, is responsible to generate revenues and control costs inorder to increase the operating income of his division. However, he is not concerned with investment­relateddecisions. Brad is most likely to be the manager of a(n):a. cost center.b. investment center.c. profit center.d. revenue center.6) If fixed costs are $1,000, variable cost per unit is $2.00 and budgeted units of output is 1,000 unites, what is thebudgeted production costs?a. $3,000b. $4,000c. $0d. $2,000Problems (10 pts each) (please show your work for partial credit)1) Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of itsproducts. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 persquare foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters’ wages are $25.00 per hour.Payroll taxes are $3.60 per hour and benefits are $5.00 per hour. How much is the direct labor cost standard (perhour)?2) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilledlabor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the firstquarter of 2015, direct material and direct labor standards for one of their popular products were as follows:Direct materials: 3 pounds per unit; $4 per poundDirect labor: 4 hours per unit; $15 per hourDuring the first quarter, Emerald produced 5,000 units of this product. Actual direct materials and direct labor costs were$65,000 and $325,000, respectively.For the purposes of preparing the flexible budget, calculate the total standard direct materials cost at a production volumeof 5,000 units.3) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilledlabor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the firstquarter of 2015, direct material and direct labor standards for one of their popular products were as follows:Direct materials: 1 pound per unit; $12 per poundDirect labor: 4 hours per unit; $15 per hourEmerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials recordsshowed that the company used 7,000 pounds of materials and actual total material costs were $98,000.Calculate the direct materials cost variance.4) Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actuallabor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the directlabor cost variance?5) Elite Brands Company uses standard costs for their manufacturing division. Standards specify 0.1 direct laborhours per unit of product. At the beginning of the year, the static budget for variable overhead costs included thefollowing data:Production volumeEstimated variable overhead costsEstimated direct labor hours6,000 units$13,500600 hoursAt the end of the year, actual data were as follows:Production volumeActual variable overhead costsActual direct labor hours4,000 units$15,000480 hoursHow much is the standard cost per direct labor hour for variable overhead?6) From the following particulars of Rose Mary Company, calculate the total direct materials variance.7) Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division andthe Trailer Division are shown here:Operating incomeTotal assets at Jan 1Total assets at Dec 31Boat Division$90,000$670,000$710,000Trailer Division$36,000$230,000$220,000With regard to the efficient use of assets, which division has a higher ROI (show your calculations)