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NikAS [45]
2 years ago
13

The standard cost of product 777 includes 2.9 units of direct materials at $6.8 per unit. During August, the company bought 29,2

00 units of materials at $6.90 and used those materials to produce 10,300 units. Compute the total, price, and quantity variances for materials.
Business
1 answer:
Olegator [25]2 years ago
8 0

Answer:

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

Explanation:

Total Material Variance = Standard Cost - Actual Cost

Standard Cost = Standard units \times Standard Price

Standard Units = 10,300 \times 2.9 = 29,870 units

Standard cost =  29,870 \times $6.8 = $203,116

Actual Cost = 29,200 \times $6.90 = $201,480

Total Material Variance = $203,116 - $201,480 = $1,636 Favorable

Material Price Variance = (Standard Rate - Actual Rate) \times Actual Units

= ($6.8 - $6.9) \times 29,200 = - $2,920 Unfavorable

Material Quantity Variance = ( Standard Units - Actual Units) \times Standard Price

= (29,870 - 29,200) \times $6.8

= $4,556 Favorable

Final Answer

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

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Barbara owns a manufacturing plant with four facilities (North, South, East, and West) in the state of Indiana. The workers at o
Ivanshal [37]

Answer:

Union power

Explanation:

The difference in wages is as a result of Union power because the North now belongs to a labor union that protects their interest. A labor union is an organization that plays the role of an intermediary between their members and their employers. The workers in the North through the union are able to negotiate for better wages. Through collective bargaining, the union gives workers In the North the power to request for better work pay than workers in the east, West and South facilities.

7 0
3 years ago
Your industrial supply company wants to create a data warehouse where management can obtain a single corporate-wide view of crit
antoniya [11.8K]

Answer:

Industrial supply company scenario:

  • The company wants to create a data warehouse where management can obtain a single corporate-wide view of critical sales information to identify best-selling products in specific geographic areas, key customers, and sales trends.
  • The sales and product information are stored in both a divisional sales system running on a Unix server and a corporate sales system running on an IBM mainframe.
  • The desire is to create a single standard format that consolidates these data from both systems.

Business problems:

  • A business problem that can arise from not having these data in a single standard format is that employees will see the data as inconsistent.
  • It is difficult to make business decisions if the data is unreliable, inaccurate, or redundant.
  • The product descriptions are formatted differently so managers and employees might get confused when it is entered into the system.
  • Also, the system identifies the sales by territory in the United States so it would be impossible to identify the sales or even around the world.
  • The corporate sales system also lacks a way to identify the identification of the customer.
  • Both sales system should be consistent with the information in order to prevent redundancies or inaccuracies.  

How easy it would be to create a database with a single standard format:

  • Creating a database with a single standard format would ideally be easy.
  • Data quality audits and data cleansing should be performed when constructing the new database.
  • Data quality audits and data cleansing would correct any redundancies and inaccuracies in the current systems.
  • By using data-cleansing software, the company can combine and integrate the data from all the systems into a single standard format that is uniform throughout the whole company.

Problems that should be addressed:

  • A problem that should be addressed is the product description and sales territory tags.
  • These tags have different formats which could lead to inconsistencies in the data.
  • The names would have to be changed so that they are the same format and are only entered once in the new single standard format database.
  • Another problem that would have to be addressed is keeping both the division and customer id tags in the new database.
  • This would provide more information for each entry and would limit any confusion among the employees.

Database specialists:

  • Database specialists will help solve the problems by performing the data quality audits and data cleansing.
  • They will also help in establishing an information policy and developing the new database.
  • They are also responsible for the specific policies and procedures through which data can be managed as an organizational resource.
  • This involves overseeing logical database design and data dictionary development, planning for data, and monitoring how information systems specialists and end-user groups use data.

General business managers:

  • General business managers would have the final say when managing data resources.
  • They would be responsible for defining and organizing the structure and content of the database and maintaining the database.

Who should have the authority?

  • The general business managers should have the authority because they are responsible for the data.
  • This would mean that even though they allow database specialists to establish an information policy and develop the new database, the managers are the ones who have to approve the final product in order for it to be implemented company-wide.
  • The managers are the ones whose reputations are on the line when a company succeeds or fails, so they should have the final authority.

6 0
3 years ago
Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the nex
Ivan

Answer:

1.

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation               226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation              226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost  -  Accumulated depreciation

Depreciation 2019  =  (497000 - 33000) * 83000 / 580000

Depreciation 2019  = 66400

Depreciation 2020  =  (497000 - 33000) * 133000 / 580000

Depreciation 2020  = 106400

Depreciation 2021  =  (497000 - 33000) * 67000 / 580000

Depreciation 2021  = 53600

Carrying value = 497000  -  [ 66400 + 106400 + 53600 ]

Carrying value = $270600

1.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 253600  -  270600

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation                226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 280000  -  270600

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation                226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

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