Figure 5-8

question 29

Multiple Choice

Figure 5-8. John's Water Slides makes custom water slides for hotels.On September 1,there were three jobs in process,Jobs 812,813,and 814.Two more jobs were started during September,Jobs 815 and 816.By September 30,Jobs 812,814,and 816 were finished.The following data has been collected:
Overhead is applied at the rate of 120% of direct labor cost.Jobs are sold at cost plus 60%.Selling and administrative expenses for September totaled $2,950.By September 30,Jobs 812 were 816 are sold,but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
Refer to Figure 5-8.What is the ending balance of Finished Goods if the beginning balance was $0?

• A)$3,457
• B)$5,531.20
• C)$8,206.40
• D)$13,737.60
• E)$2,785

---

Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used for budgeting and cost control.

Actual Production

Refers to the actual quantity of goods or services produced during a specific period, as opposed to planned or projected amounts.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standards set for quantity and price.