An inexperienced accountant for Marigold Corp. showed the following in the income statement: income before income taxes $432,000
1 answer:
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Answer:
Total Material Variance = $10,060 Unfavorable
Explanation:
Provided Information,
Standard budgeted unit of raw material = 1 yard
Standard price per unit = $91.00
Actual price per yard = $91.00
Actual units produced = 4,600
Actual yards of plastic used = 4,660 yards
Standard yards for actual production = 4,600 1 yard = 4,600
Total Material Variance = Standard Cost for actual output - Actual Cost
Standard Cost = 4,600 $90 = $414,000
Actual Cost = 4,660 $91 = $424,060
Total Material Variance = $414,000 - $424,060 = - $10,060
Since value is negative as actual cost is more than budgeted, the variance is unfavorable.
Final Answer
Total Material Variance = $10,060 Unfavorable
Answer:
The future value of an annuity (FVA) is $828.06
Explanation:
The future value of an annuity (FVA) is the value of payments at a specific date in the future based on the payments being recurring and assuming a discount rate. The future value of an annuity (FVA) is based on regular cash flow. The higher the discount rate, the greater the annuity's future value.
Where:
FVA is The future value of an annuity (FVA)
P is payment per period
n is the number of period
r is the discount rate
Given that:
P = $195
r = 4% = 0.04
n = 4 years
substituting values
The future value of an annuity (FVA) is $828.06