Smith Manufacturing Uses a Standard Costing System What Are Smith's Material and Conversion Variances for the Month

question 17

Multiple Choice

Smith Manufacturing uses a standard costing system.For the current period, Smith allocated the following costs using a predetermined overhead rate: $$\begin{array} { l r r r } & \text { Material } & \text { Conversion } & \text { Total } \\\text { Allocated Costs: } & & & \\\text { Units completed } & \$ 40,000 & \$ 20,000 & \$ 60,000 \\\text { Units in process end of period } & \$ 5,000 & \$ 3,000 & \$ 8,000 \\& \$ 45,000 & \$ 23,000 & \$ 68,000 \\& & & \\\text { Actual Costs: } & \$ 50,000 & \$ 22,000 & \$ 72,000\end{array}$$ What are Smith's material and conversion variances for the month?

• A)$10,000 Unfavorable materials variance/$2,000 Unfavorable conversion variance.
• B)$20,000 Unfavorable materials variance/$2,000 Favorable conversion variance.
• C)$5,000 Unfavorable materials variance/$1,000 Favorable conversion variance.
• D)$12,000 materials variance/$50,000 conversion variance.
• E)None of the above.

Explain the effects of resistance in a circuit.

Calculate current, voltage, and resistance in electrical circuits.

Recognize the safety functions and importance of grounding in electrical circuits.

Understand basic electrical terms and units and their inter-relationships.

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Definitions:

Credit Sales

Sales in which the customer is allowed to purchase goods or services with an agreement to pay at a later date.

Average Collection Period

The mean duration required for a company to collect payments due from its clients.

Credit Period

The length of time that credit is granted.

Marginally Competitive

Describes markets or situations where small changes in performance or price can significantly affect the competitive position of firms or products.