Answer:
Results are below.
Explanation:
<u>To calculate the direct labor rate variance, we need to use the following formula:</u>
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (17.7 - 17.8)*6,200
Direct labor rate variance= $620 unfavorable
Actual rate= 110,360/6,200= $17.8
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,300*4.4 - 6,200)*17.7
Direct labor time (efficiency) variance= $8,496 unfavorable
Answer:
A) Information asymmetry.
Explanation:
An information asymmetry can be defined as a situation where there is an imbalance of information between two parties in their knowledge of important points, factors and details. Thus, because one party has more information or knowledge than the other, this usually results in an inefficient outcome and or failure.
The theory of information asymmetry was developed and introduced by three (3) notable Nobel prize winning economists, namely; Michael Spence, George Akerlof and Joseph Stiglitz.
In this scenario, Matthew a divisional manager at Venus Inc. reports to the CEO of the company. Matthew has more employees working for him than required and he has not told the CEO about this, even though there are other departments that are in need of more employees.
<em>Hence, the concept illustrated here is an information asymmetry.</em>
Answer:
6.11%
Explanation:
For computing the variance, first we have to determine the expected return which is shown below:
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
= (12% × 5%) + (10% × 85%) + (2% × 10%)
= 0.6% + 8.5% + 0.2%
= 9.30%
Now the variance would equal to the
= Weightage × (Return - Expected Return) ^2
For boom:
= 5% × (12% - 9.3%) ^2
= 0.3645
For normal economy:
= 85% × (10% - 9.3%) ^2
= 0.4165
For recession:
= 10% × (2% - 9.3%) ^2
= 5.329
So, the total variance would be
= 0.3645 + 0.4165 + 5.329
= 6.11%
Answer: The retrenchment strategy
Explanation:
The retrenchment strategy is one of the type of business strategy in which the different types of organizations are adopted this strategy for the purpose of minimizing the business operations so that the company become more financial stable.
The retrenchment strategy helps in increase the beneficial factors by selling various types of products and the services in the market.
According to the given scenario, the retrenchment strategy is basically used by the Serrano for the purpose of overcome from all the losses due to the fire mishap in the company.
Therefore, The retrenchment strategy is the correct answer.