Each time Mayberry Nursery hires a new employee, it must wait for some period of time before the employee can meet production standards. Management is unsure of the learning curve in its operations bu

Each time Mayberry Nursery hires a new employee, it must wait for some period of time before the employee can meet production standards. Management is unsure of the learning curve in its operations but it knows the first job by a new employee averages 30 hours and the second job averages 24 hours. Assume all jobs to be equal in size.

44.What is the learning-curve percentage, assuming the incremental unit-time method?

A) 80%

B) 85%

C) 90%

D) 100%

45.What is the time for a new employee to build 16 units with this learning curve using the cumulative average-time method? You may use an index of -0.1520.

A) 3.65 hours

B) 2.048 hours

C) 29.2 hours

D) 32.76 hours

Harry’s Picture manufactures various picture frames. He spends $ 20 on raw material for each frame. Each new employee takes 5 hours to make the first picture frame and 4 hours to make the second. He pays $20 per hour to his employee. The manufacturing overhead charge per hour is $10.

46.What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520.

A) $876

B) $1,036

C) $129.50

D) $400

47.Craig’s Cola was to manufacture 1,000 cases of cola next week. The accountant provided the following analysis of total manufacturing costs.

Variable Coefficient Standard Error t-Value

Constant 100 71.94 1.39

Independent variable 200 91.74 2.18

r2 = 0.82

What is the estimated cost of producing the 1,000 cases of cola?

A) $200,100

B) $142,071

C) $100,200

D) $9,000

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:

25.The standard hours allowed for actual production for the year total:

A. 247,500

B. 396,000

C. 400,000

D. 495,000

26.Franklin’s variable overhead efficiency variance for the year is

A. $33,000 unfavorable

B. $35,200 favorable

C. $35,200 unfavorable

D. $33,000 favorable

27.Franklin’s variable overhead rate variance for the year is:

A. $20,000 unfavorable

B. $22,000 favorable

C. $22,000 unfavorable

D. $20,000 favorable

28.The fixed manufacturing overhead applied to Franklin’s production for the year is:

A. $484,200

B. $575,000

C. $594,000

D. $600,000

29.Franklin’s Production volume variance for the year is:

A. $6,000 unfavorable

B. $19,000 favorable

C. $25,000 favorable

D. $55,000 unfavorable

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