Answer:
Total material price variance= $380 favorable
Explanation:
Giving the following information:
Material A:
Purchase= 1,000 units
Purchase price= $2.1
Standard price= $2
Material B:
Purchase= 2,400 units
Purchase price= $2.8
Standard price= $3
<u>To calculate the total material price variance, we need to use the following formula on each material:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
<u>Material A:</u>
Direct material price variance= (2 -2.1)*1,000
Direct material price variance= $100 unfavorable
<u>Material B:</u>
Direct material price variance= (3 - 2.8)*2,400
Direct material price variance= $480 favorable
Total material price variance= -100 + 480
Total material price variance= $380 favorable
Answer:
(a) $2.14 million; $3.45 million
(b) $1.3 million; $4.15 million
Explanation:
Given that,
(a) Book value of current assets = Net working capital + current liability
= $0.54 million + $1.6 million
= $2.14 million
Total book value of current and net fixed assets:
= Book value of current assets + Book value of net fixed assets
= $2.14 million + $3.45 million
= $5.59 million
(b) Market value of current assets:
= Cash value of all the current assets today
= $1.3 million
Market value of net fixed assets:
= Selling value of machinery today
= $4.15 million
Total market value:
= Market value of current assets + Market value of net fixed assets
= $1.3 million + $4.15 million
= $5.45 million
Answer:
Efficiency is 87.50% and Utilization is 70%
Explanation:
Actual ouput = 7 loans per day
Effective capacity = 8 loans per day
Design capacity = 10 loans per day
Therefore,
Efficiency = actual output÷effective capacity×100%
= 7 ÷ 8 × 100%
Efficiency = 87.50%
Utilization = actual output÷design capacity×100%
= 7 ÷ 10 × 100%
Utilization = 70%