Answer:
E. Over applied overhead
Explanation:
Over applied overhead is defined as excess amount of overhead applied during a production period over the actual overhead incurred during that period. In other words, it means excess overhead applied to work over the amount of overhead actually incurred.
When this occurs, it is called favourable variance and it is added to the budgeted profit in the end of the accounting period in a financial statement.
Answer:
D. Through the government purchases multiplier, the $1 increase in government spending will lead to an increase in aggregate demand and national income, which will lead to an increase in induced spending.
Explanation:
We know,
Multiplier = Changing real equilibrium GDP ÷Change of government spending.
If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.
Answer:
Actual cost per unit = $2.13
Explanation:
The spending variance for equipment and supplies can be calculated as below:
Spending variance = Actual spending - Standard Spending, or:
- 9,604 = Actual spending - Standard cost per unit x Budgeted quantity
- 9,604 = Actual spending - 2.67 x 19,200
Solve the equation we get Actual spending = 41,660.
The actual cost per unit for supplies is calculated as below:
Actual cost per unit = Actual spending/Actual production unit
= 41,660/19,600 = 2.13
Answer: a. More of Project A's cash flows occur in the later years.
Explanation:
When a project has its cashflows occurring in later years, the NPV will be less because the discount rate would have a greater period to discount it in as opposed to cashflows that occur more recently which would receive less discounting from the discount rate.
As a result of Project A having more distant cashflows, the discount rate discounted its cash flows more which is why higher rates led to its NPV being zero because those higher rates got to discount it over a longer period.
Answer:
$19,713 unfavorable
Explanation:
Direct labor efficiency variance tells us that how the direct labor is used to product the standard numbers of share. It is calculate by multiplying the difference of actual labor hours and standard labor hours with standard rate.
Formula for the efficiency variance
Direct labor efficiency variance = (Actual Hours - Standard Hours ) x Standard Rate
Direct labor efficiency variance = (3,500 - (0.25x5,700 ) x $9.5
Direct labor efficiency variance = (3500 - 1425 ) x $9.5
Direct labor efficiency variance = $19,713 unfavorable
As the actual Labor hours spent is higher than the estimated so, the efficiency variance id unfavorable.
