# University of Phoenix ACC455 Final Exam 2015

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1. The per-unit standards for direct labor are 2 direct labor hours at \$12 per hour. If in producing 2,400 units, the actual direct labor cost was \$51,200 for 4,000 direct labor hours worked, the total direct labor variance is \$4,000 unfavorable \$6,400 unfavorable \$1,920 unfavorable \$6,400 favorable 2. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, \$800,000; machining, \$1,800,000; and inspecting, \$600,000. Information on the two products is: Mini A Maxi B Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Mini A using traditional costing using direct labor hours is \$1,670,000 \$1,536,000 \$1,200,000 \$1,920,000 3. Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost \$22,000. If sales are expected to increase \$40,000, by how much will the company's net income increase? \$18,000

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University of Phoenix ACC455 Final Exam 2015Report this Question as Inappropriate1. The per-unit standards for direct labor are 2 direct labor hours at \$12 per hour. If inproducing 2,400 units, the actual direct labor cost was \$51,200 for 4,000 direct laborhours worked, the total direct labor variance is\$4,000 unfavorable\$6,400 unfavorable\$1,920 unfavorable\$6,400 favorable2. Poodle Company manufactures two products, Mini A and Maxi B. Poodle'soverhead costs consist of setting up machines, \$800,000; machining, \$1,800,000; andinspecting, \$600,000. Information on the two products is:Mini A Maxi BDirect labor hours 15,000 25,000Machine setups 600 400Machine hours 24,000 26,000Inspections 800 700Overhead applied to Mini A using traditional costing using direct labor hours is\$1,670,000\$1,536,000\$1,200,000\$1,920,0003. Disneys variable costs are 30% of sales. The company is contemplating anadvertising campaign that will cost \$22,000. If sales are expected to increase \$40,000,by how much will the company's net income increase?\$18,000\$12,000\$6,000\$28,0004. The cost to produce Part A was \$10 per unit in 2005. During 2006, it has increasedto \$11 per unit. In 2006, Supplier Company has offered to supply Part A for \$9 perunit. For the make-or-buy decision,net relevant costs are \$1 per unitdifferential costs are \$2 per unitincremental costs are \$1 per unitincremental revenues are \$2 per unit5. Luca Company overapplied manufacturing overhead during 2

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