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1 year ago

Describe how total variable costs and unit variable costs behave with change in the level of activity.

1 answer:

5 0

Total variable costs fluctuate in direct proportion to variations in activity levels. No matter the level of activity, unit variable costs are constant.

<h3>What is the difference between Total variable cost and Unit Variable Cost?</h3>

The sum of all variable expenses related to the cost of products sold within a reporting period is known as the total variable cost. Analyzing the profitability of corporations is a crucial element. Only costs that change in response to production or sales volume are included in the total variable cost.

The cost of each unit of goods that a firm produces is referred to as variable cost per unit. Variable costs alter as changes take place in the company's level of production or activity. Changes in the business have an impact on the unit variable cost; as more units of a good are produced, additional costs are spent.

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The following data have been provided by Liggett Corporation: Budgeted production 7,400 units Standard machine-hours per unit 6.

abruzzese [7]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Budgeted production 7,400 units Standard machine-hours per unit 6.6 machine-hours Standard lubricants rate $ 3.50 per machine-hour

Actual production 7,600 units Actual machine-hours (total) 49,840 machine-hours Actual lubricants cost (total) $ 179,821

Manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity

Manufacturing overhead spending variance= (3.5 - 3.607965)*49,840= 5,381 unfavorable

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3 years ago

Seybert Systems accounts for its investment in Wang Engineering bonds as available-for-sale. Seybert's balance in accumulated ot

MaRussiya [10]

Answer:

Seybert purchased the Wang investment for $173,000

Explanation:

Since there is a credit balance. It means the stock is increased in value by $27,000. So that the stock was purchased at $173,000 ($200,000-$27,000).

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3 years ago

Green Bean, Inc. began 2018 with cash of $ 52,000. During the year, Green Bean earned revenue of $ 598,000 and collected $ 624

melisa1 [442]

Answer:

Explanation:

The preparation of the Cash Flows from three Activities - Direct Method is shown below:

Cash flow from Operating activities

Collections from customers $624,000

Less: Cash paid to suppliers and employees -$419,000

The total cash paid

= $215,000 + $204,000

= $419,000

Net Cash flow from Operating activities $205,000

Cash flow from Investing activities

Purchase of equipment -$145,000

Net Cash flow from Investing activities -$145,000

Cash flow from Financing activities

Cash dividends declared and paid -$49,000

Net Cash flow from Financing activities -$49,000

Net Cash flow from Operating activities $205,000

Net Cash flow from Investing activities -$145,000

Net Cash flow from Financing activities -$49,000

Net increase (decrease) in cash for the year is $11,000

Add: Beginning cash balance $52,000

Ending cash balance $63,000

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3 years ago

Maggie Sharrer Company borrows $88,500 on September 1, 2017, from Sandwich State Bank by signing an $88,500, 12%, one-year note.

xenn [34]

Answer:

interest = $3,540

Explanation:

given data

principal = $88,500

rate = 12 %

time = 4 months ( September 1, 2017 to September 1, 2017 )

to find out

What is the accrued interest

solution

we get here interest that is express as

interest = principal × rate × time .......................1

put here value we get interest

interest = $88500 × 12% × $\frac{4}{12}$

interest = $88500 × 0.12 × 0.33333

interest = $3,540

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4 years ago

Suppose workers attend several skill-building workshops, increasing their labor productivity. how is this represented by a produ

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3 years ago