The company PETROL sells designer jeans made from cotton with steel buttons, rivets, and zippers. The current prices for materials and labor are shown in the table below.ResourceUnit CostCotton$1.65 per kilogramHardware (buttons, rivets, zipper)$1.42 per setLabor$12 per hourManufacturing a single pair of jeans requires 1.2 kilogram of cotton, 1 set of hardware, and 4.5 hours of labor.

A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. If 5,000 units are produced and sold, income equals:Multiple Choice$2,050,000.$1,930,000.$290,000.$410,000.$1,520,000.

Fill in the Blank QuestionFill in the blank question.A manufacturing company has budgeted production of 5,000 units for May and 4,400 units in June. Each unit requires 3 pounds of materials at a cost of $10 per pound. On May 1, there are 2,750 pounds of materials on hand. The company desires an ending materials inventory of 60% of the next month's materials requirements. The total cost of direct materials purchases for May will be $.

The standard price of materials is $3.50 per pound and the standard quantity allowed for actual output is 7,000 pounds. If the actual quantity purchased and used was 6,700 pounds, and the actual price per pound was $3.40, the direct materials price variance is

The SP Company makes 40,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity consists of:Direct Materials$5.50Direct Labour$5.60Variable Manufacturing Overhead$4.75Fixed Manufacturing Overhead$4.45Average cost per motor$20.30An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Company for this motor is $18. If SP Company decides not to make the motors, there would be no other use for the production facilities, and total fixed factory overhead costs would not change. What is the net advantage (disadvantage) of purchasing the motors from outside supplier rather than making them? Assume that direct labour is a variable cost in this company. Question 18Answera.$92,000 net advantageb.$86,000 net disadvantagec.$92,000 net disadvantaged.$86,000 net advantage

A company has established 7 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 7,200 pounds of Material J that cost $13,080.The direct materials price variance is:Multiple Choice$1,320 unfavorable.$400 unfavorable.$400 favorable.$1,320 favorable.$920 favorable.