. Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the act
1 answer:
You might be interested in
Answer:
Initial valuation of the building A=$540000
Initial valuation of the building B=$300000
Initial valuation of the land=$360000
Explanation:
First,we will calculate the total fair value of all assets:
Total fair value of assets=Fair value of building A+Fair value of building B+Fair value of land
Total fair value of assets=$585,000+$325,000+$390,000
Total fair value of assets=$1,300,000
Initial valuation of the building A=
For building B:
For Land:
Check of answer;
Sum of all initial Values= Lump-Sum
$540000+$300000+$360000=$1,200,000
$1,200,000=$1,200,000
Answer:
a) 500F and 3,000U
the company use a cheaper material thus, favorable price variance.
But this material had lower quality thus, negative quantity variance
b) 4,000U 2,100U
There was overtime thus, making labor rate higher and productivity as the shift are longer, decrease.
It could also be a combination between wrong directives from the supervisor or defective equipment
Explanation:
DIRECT MATERIALS VARIANCES
std cost $ 1.50
actual cost $ 1.48
quantity 25,000 (amount purchased)
difference $0.02
price variance $500.00
std quantity 18000 (3,000 toys produced x 6 per toy)
actual quantity 20000 (25,000 - 5,000 ending inventory)
std cost $1.50
difference -2000.00
quantity variance $(3,000.00)
DIRECT LABOR VARIANCES
std rate $21.00
actual rate $22.00 (88,000 labor cost / 4,000 direct labor hours)
actual hours 4,000
difference $(1.00)
rate variance $(4,000.00)
std hours 3900.00 (3,000 toys x 1.3 hours per toy)
actual hours 4000.00
std rate $21.00
difference -100.00
efficiency variance $(2,100.00)