Answer:
Total direct labor variance= $960 favorable
Explanation:
Giving the following information:
We will separate the direct labor cost variance in rate and quantity variance. <u>To calculate the direct labor rate and quantity variance, we need to use the following formulas:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (30*6 - 130)*14
Direct labor time (efficiency) variance= $700 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 12)*130
Direct labor rate variance= $260 favorable
Actual rate= 1,560/130= $12
Total direct labor variance= 700 + 260
Total direct labor variance= $960 favorable
Answer:
The gap between product design specifications and actual performance of the product.
Explanation:
The term performance quality refers to the gap between product design specifications and actual performance of the product.
This ultimately implies that, a performance quality refers to a measure of the level at which the primary characteristics of a product that is being manufactured by a producer operates. Therefore, all the elements of the commitment made in a product that is to be sold to consumers by the producer is the performance quality of a product.
Hence, business firms or companies should endeavor to design a level of performance that is appropriate, effective and efficient to their customers, so as to increase the customer's level of satisfaction and enhance the chances of them using the product in the future.
<span>A term policy's cost increases at the end of each term. If you own a term policy and you want to increase your coverage, your health will have to be ...</span>
Answer:
Total product cost= $150,000
Explanation:
Giving the following information:
10,000 units:
Direct materials $ 6.00
Direct labor $ 3.50
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
<u>The product cost is the sum of direct material, direct labor, and total overhead. </u>
First, we need to calculate the total fixed overhead:
Fixed overhead= 4*10,000= $40,000
Now, the total product cost:
Total product cost= 10,000*(6 + 3.5 + 1.5) + 40,000
Total product cost= $150,000
Answer:
The correct answer is A: $1,080,000
Explanation:
Giving the following information:
Reyes Company had a gross profit of $720,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year of operations as a retailer.
Assuming there was any beginning inventory:
Sales= gross profit + (purchase - ending inventory)
Sales= 720,000 + (840,000 - 480,000)= $1,080,000
