23 delicious food products is famous for their specialty fruit cake the main ingredi 4306829

23 delicious food products is famous for their specialty fruit cake the main ingredi 4306829

23) Delicious Food Products is famous for their specialty fruit cake. The main ingredient of the cake is dried fruit, which Delicious purchases by the pound. In addition, the production requires a certain amount of direct labor. Delicious uses a standard cost system, and at the end of the first quarter, there was an unfavorable materials efficiency variance. Which of the following would be a logical explanation for that variance?

A) The production manager negotiated a lower wage package for production staff, bringing direct labor costs down.

B) The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of materials during their training period.

C) The procurement manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard.

D) The production staff changed the work flow process so that production required fewer direct labor hours.

24) Delicious Food Products is famous for their specialty fruit cake. The main ingredient of the cake is dried fruit, which Delicious purchases by the pound. In addition, the production requires a certain amount of direct labor. Delicious uses a standard cost system, and at the end of the first quarter, there was an unfavorable labor cost variance. Which of the following would be a logical explanation for that variance?

A) The cost of workers' medical insurance plans jumped up dramatically during the quarter.

B) The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of materials during their training period.

C) The procurement manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard.

D) The production staff changed the work flow process so that production required fewer direct labor hours.

25) Delicious Food Products is famous for their specialty fruit cake. The main ingredient of the cake is dried fruit, which Delicious purchases by the pound. In addition, the production requires a certain amount of direct labor. Delicious uses a standard cost system, and at the end of the first quarter, there was a favorable labor efficiency variance. Which of the following would be a logical explanation for that variance?

A) The cost of workers' medical insurance plans jumped up dramatically during the quarter.

B) The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of materials during their training period.

C) The procurement manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard.

D) The production staff changed the work flow process so that production required fewer direct labor hours.

26) The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n):

A) favorable direct materials cost variance.

B) unfavorable direct labor cost variance.

C) unfavorable direct labor efficiency variance.

D) favorable direct materials efficiency variance.

27) The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously. The lower grade of materials, however, meant a higher defect rate on the assembly line, and higher wastage of materials during production, which in turn lowered operating income. This situation would have led to a(n):

A) unfavorable direct materials cost variance.

B) favorable direct labor cost variance.

C) unfavorable direct labor efficiency variance.

D) unfavorable direct materials efficiency variance.

28) The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with her factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This situation would have produced a(n):

A) unfavorable direct materials cost variance.

B) favorable direct labor cost variance.

C) favorable direct labor efficiency variance.

D) unfavorable direct materials efficiency variance.

29) The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with her factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This situation would have produced a(n):

A) favorable direct materials cost variance.

B) unfavorable direct labor cost variance.

C) unfavorable direct labor efficiency variance.

D) favorable direct materials efficiency variance.

30) The production manager of a company was experiencing a high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to purchase a higher grade of material that would be more reliable, but he was worried that the cost of the new material might negatively affect operating income. This situation would have produced a(n):

A) unfavorable direct materials cost variance.

B) favorable direct labor cost variance.

C) favorable direct labor efficiency variance.

D) unfavorable direct materials efficiency variance.

31) The production manager of a company was experiencing a high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to purchase a higher grade of material that would be more reliable, but he was worried that the cost of the new material might negatively affect operating income. This situation would have produced a(n):

A) favorable direct materials cost variance.

B) unfavorable direct labor cost variance.

C) unfavorable direct labor efficiency variance.

D) favorable direct materials efficiency variance.

32) The production manager of a company was experiencing a high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to recruit some highly skilled production workers from another company to bring down the defect rate, but was worried that the higher wages of 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

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