Amoeba Manufacturing Company Provided the Following Information for the Year

question 9

Multiple Choice

Amoeba Manufacturing Company provided the following information for the year 2015: $$\begin{array} { | l | r | } \hline \text { Purchases - Raw Materials } & \$ 90,000 \\\hline \text { Plant Utilities \& Insurance } & 67,500 \\\hline \text { Indirect Materials } & 11,750 \\\hline \text { Indirect Labor } & 4,750 \\\hline \text { Direct Materials Used in Production } & 96,000 \\\hline \text { Direct Labor } & 117,500 \\\hline \text { Depreciation on Factory Plant \& Equipment } & 6,000 \\\hline \text { Cost of Goods Manufactured } & 290,850 \\\hline\end{array}$$ The inventory account balances as of January 1^st 2015 are given below.
$$\begin{array} { | l | r | } \hline \text { Raw Materials Inventory } & \$ 42,000 \\\hline \text { Work-in-Process Inventory } & 12,000 \\\hline \text { Finished Goods Inventory } & 49,500 \\\hline\end{array}$$ What is the ending balance in the Work-in-Process Inventory account?

• A) $24,650
• B) $12,000
• C) $49,500
• D) $65,350

Identify favorable and unfavorable variances and their implications for management.

Understand the concept of flexible budgeting and how it adapts to changes in activity levels.

Calculate and analyze variances between planning and actual budgets.

Interpret the financial impact of changes in production levels or service activity on direct materials, labor, and overhead costs.

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Definitions:

Consumer Market

The market segment consisting of individual customers who purchase goods and services for personal use.

Segments

In marketing, it refers to subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities like interests, needs, or location.

Demographic Segmentation

The process of dividing a market into smaller groups based on demographic factors such as age, income, gender, or education.

Lego Company

A global toy manufacturing company known for its line of interlocking plastic bricks and accompanying accessories.