Question

QUESTION 3 as request of Wost $100 I plan to sell 10,000 upholstered chairs and 5000 upholstered sofas. The chairs require 6 board feet of wood and 3 yards of upholstery material. The sofas require 24 board feet of wood and 12 yards of material. I want to keep an inventory of 10000 yards of material and 20000 board feet of wood. Current beginning raw materials inventory is 9000 yards of material and 21000 board feet of wood. The materials cost $10 a yard and the wood cost $5 per board feet. Considering the current beginning inventory and desired ending inventory, how many board feet of wood should I buy? O 180,000 179,000 91,000 90,000 181,000

Answer 1

3
Board feet required for chairs	60000	=10000*6
Board feet required for sofas	120000	=5000*24
Desired ending inventory	20000
Less: Beginning inventory	-21000
Board feet of wood purchases	179000
Option B 179,000 is correct
4
Direct labor efficiency variance = Standard rate*(Actual hours-Standard hours)
Direct labor efficiency variance	4500	(unfavorable)	=10*(4950-9000*0.5)
Option B 4500 (unfavorable) is correct