Answer:
correct option is d. $4800 U
Explanation:
given data
product requiring = 3 direct labor hours
standard rate = $ 16 per direct labor hour
produced using = 8700 direct labor hours
actual payroll = $135720
to find out
labor quantity variance
solution
we get here labor quantity variance that is express as
Direct labor quantity variance = (standard hours worked for actual production - actual hour worked) × standard rate per direct labor hour ...................1
here standard hours worked for actual production will be as
standard hours worked = standard hours required per unit of production × actual units produced
standard hours worked = 3 × 2800
standard hours worked = 8400 hours but we have given actual work hour 8700 direct labor hours
so put all value is equation 1 we get
Direct labor quantity variance = ( 8400 - 8700 ) × $16
Direct labor quantity variance = $4800 unfavorable
so correct option is d. $4800 U
Answer:
Economic recession
Explanation:
A recession occurs when an economy faces a negative real GDP for two successive quarters or more. In a business cycle, the recession would be a period that occurs between the peak and the trough.
A recession can be caused by many factors:
1. High interest rates
2. High unemployment
3. Low consumer and business confidence
It is possible to say that all factors are interconnected. For example, when interest rates are higher, it means that people will spend less on borrowed money, as now borrowing money is more costly. This in turn means that demand for products are lower, leading to lower business confidence. When sales are low, businesses may attempt to cut back on costs to ensure profits. This can take the form of laying off workers. Hence, unemployment in the economy will increase. Consumer confidence will also plummet.
Some consequences may include:
1. Fall in inflation: As aggregate demand in the economy falls, price levels will fall. Thus, reducing inflation.
2. Government deficit: the government may have to start spending more on expenditures such as unemployment benefits. On the other hand, income generated from corporate/income taxes will fall. Fall in income and rise in expenditure causes a deficit.
3. Environmental pollution is less: Due to less movement in the economy, polluting factors such as factory smoke, vehicle congestion and waste send to landfill will be much lesser. This would prove to be beneficial for the environment.
Answer:
Effect on income= $7,500 increase
Explanation:
Giving the following information:
Special offer:
Units= 10,000
Price= $5
Production costs:
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= number of units*unitary contribution margin
Effect on income= 10,000*(5 - 1.75 - 2.5 - 1.5)
Effect on income= $7,500 increase
Answer:
False
Explanation:
Retained earnings can be defined as the amount of money or income left after a firm or organization as paid out it dividends to their shareholders.
Retained earnings are also an organisation's profit which they retained or keep and this earning is reinvested for other purposes. Such purposes include: Future expansion of the the organization. Retained earnings are a form of liability to a firm.
Funds acquired by the firm through retained earnings (similar to their free cash flow), have cost attached to them. This is because the cost of retained earnings is equivalent to rate of return on re-investment of dividends of shareholders that is paid by the organization. Hence, retained earnings is equivalent to the cost of equity.
Answer:
B $32.50
Explanation:
Book value per common share will be calculated as;
= (Stockholder's equity - Shares × Call price per share) / Shares of common stock outstanding
Given that;
Stockholder's equity = $680,000
Shares = 500
Call price per share = $60
Shares of common stock outstanding = 20,000
Therefore,
Book value per common share
= ($680,000 - 500 × $60) / 20,000
= ($680,000 - $30,000) / 20,000
= $650,000 / 20,000
= $32.5
