Answer: C. will be favorable
Explanation:
Variable overhead efficiency variance simply means the difference between the time that it takes to manufacture a particular product and the time that was budgeted for the product.
Since the time incurred for the product was 2300 hours while the budgeted time was (600 × 4) = 2400 hours, then the variable overhead efficiency variance is favorable.
Answer:
$9.6 million
Explanation:
The amount Laramie would record in its books of account in respect of the land acquisition cost is the sum of the cash paid now and the notes payable .
That effectively gives acquisition cost of $9.6 million ($2.9 million+$6.7 million).
The interest payable on the notes payable of $6.7 million would be treated as expense in the income statement of years 2021 and 2022 respectively without being added to the acquisition cost since it is a revenue expense and should not be capitalized.
Answer:
d. 234,000 lbs. of A; e. 39,000 lbs. of B
Explanation:
For computing the number of pounds first we have to find out the production units which is shown below:
Production units = Sales units + ending inventory units - beginning inventory units
= 76,000 units + 10,500 units - 8,500 units
= 78,000 units
Now number of material pounds required is
Direct material A B
One unit requires 3 lbs 1 ÷ 2 lbs
Multiply 78000 unit requires 234,000 39,000
We simply multiplied the production units with the required unit of each material i.e A and B so that the accurate number of pounds could arrive
