Question 13 of 20

Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.5 liters per unit

Julli [10]

Answer:

Direct material quantity variance= $1,400 unfavorable

Explanation:

Giving the following information:

Standard quantity 7.5 liters per unit Standard price $ 2.00 per liter

Actual production was 3,400 units.

The company used 26,200 liters of direct material.

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7.5*3,400 - 26,200)*2

Direct material quantity variance= (25,500 - 26,200)*2

Direct material quantity variance= $1,400 unfavorable

5 0

2 years ago

A company purchased a tract of land for its natural resources at a cost of $1,544,800. it expects to mine 2,020,000 tons of ore

Tasya [4]

The gradual decrease in the value of natural resource is called depletion. The deplection expense is calculated on the cost net off salvage value.

$Depletion expense per ton of ore=\frac{(Cost of resource - salvage value)}{Expected Mine} =\frac{(1544800-252000)}{2,020,000} =$0.64$

Therefore, Depletion expense per ton of ore would be $0.64 per ton of ore.

5 0

3 years ago

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never:

Leya [2.2K]

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never maintained a physical trading location where dealers meet to trade securities.

8 0

3 years ago

A customer who is age 75 has been taking RMDs (Required Minimum Distributions) each year from his Traditional IRA in cash. This

ahrayia [7]

Answer:

Taking his RMD in form of shares in a depressed market is a good investment decision. As the price will bound back and he will make more money.

Explanation:

When a traditional IRA holder gets to the age of 72 years he is entitled to required minimum distribution payments. This is not obtainable with other IRA plans.

RMD can be taken as cash or as shares. There is not tax difference between the two options.

Normally cash is better since it is easier to get access to and the beneficiary gets the exact dollar amount.

However when there is a depressed stock market, taking RMD in shares is a better option. Shares are bought and sold when prices appreciate.

This is a better option than selling shares at the low market price.

4 0

2 years ago

Ownership costs are incurred after the initial purchase and are associated with the ongoinguse of the product or material. Which

ikadub [295]

Answer:

C, Taxes

Explanation:

Tax is the financial levy or charge imposed on an individual by the government to fund its expenditure.

When a product is purchased, the ownership cost of the product does not include tax because a product is not taxable. The income from the product is taxable but not the product itself.

So when purchasing a product, asides from value added taxes which has been included in the product price, there is no continuous tax payment on the product after its been paid for.

Cheers.

7 0

3 years ago