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steposvetlana [31]
3 years ago
6

Ros Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.90 per unit of output. If the comp

any's performance report for last month shows a $500 unfavorable spending variance for indirect materials and if 8,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:a. $7,650b. $7,700c. $7,200e. $6,700
Business
1 answer:
Dominik [7]3 years ago
3 0

Answer:

b. $7,700

Explanation:

Ros Corporation

Budget cost  indirect materials, $0.90 per unit of output

Budget cost  indirect materials$0.90 *8000= 7200

Spending variance$500 Unfavorable

Spending variance = Actual Costs - Budgeted Costs

$500 Unfavorable = Actual  Costs-  $0.90 *8000

$500 Unfavorable = Actual  Costs-  7200

Actual Costs = 7200 + 500= $7700

As spending variance is unfavorable it means that the actual costs are higher than the budgeted cost. So we get the actual costs by adding the spending variance to  the budgeted costs.

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Cassius Corporation has provided the following contribution format income statement. Assume that the following information is wi
Romashka [77]

Answer:

9,400 units

Explanation:

The breakeven point is the number of units that must be sold for the company to make neither a loss nor a profit. A target profit is the net of the sales less the sum of the fixed and variable expenses. The contribution margin  is the difference between the sales and variable cost.

Sales per unit = $210,000/7000 = $30

Variable cost per unit = $136,500/7000 = $19.50

Let the number of units to be sold to achieve the profit target be x

30x - 19.5x - 67200 = 31500

10.5x = 98700

x = 98700/10.5

x = 9,400 units

8 0
3 years ago
Often consumers base their perception of price on what they perceive to be the customary or ________.
ycow [4]
Based on other stores, and what their prices are too
3 0
3 years ago
Read 2 more answers
Because people prepare budgets, budget figures are often biased. Which of the following is true? a. When senior management sets
eduard

Answer: B

Explanation:

Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.

4 0
3 years ago
The Allowance for Bad Debts account had a balance of $8,500 at the beginning of the year and $7,200 at the end of the year. Duri
aliya0001 [1]

Answer:

The total amount of past-due accounts receivable that were written off as uncollectible during the year were: $17,300

Explanation:

The amount of past-due accounts receivable that were written off as uncollectible during the year are calculated by following formula:

Past-due accounts receivable that were written off as uncollectible = The Allowance for Bad Debts account had a balance at the beginning of the year + Bad debts expense was recognized - The Allowance for Bad Debts account had a balance at the end of the year = $8,500 + $16,000 - $7,200 = $17,300

3 0
3 years ago
You invested in a $5,000 bond in 2012 with a coupon rate of 6%. What will be its value in 2018 if the required rate of return is
ELEN [110]

Answer:

$4540.19

Explanation:

Step 1: Get the formula for the value of the bond  in 2018

Formula= P * (1+r)n

P= Investment = $5000

r= Coupon rate=6%

n= Period or number of years = 6 years

Step 2: Calculate the value of the bond in 2018

Value of the bond in 2018= 5000 * (1+ 0.06)6

= 7092.60

Step 3: Calculate the Present value of the bond

Formula= (P x Present Value Factor) + (Interest x The present value interest factor of an annuity (PVIFA))

(P x Present Value Factor) = (5000 x 1\(1+r)^n)

where r= rate of return= 8%

n= years = 6

(Interest x The present value interest factor of an annuity (PVIFA) =

Interest = (Coupon rate x Investment)

PVIFA= 1\(1+r)^n}

where r= rate of return= 8%

n= years = 6

= (5000 x  0.6307) + (300 x 4.6223 )

=4540.19

5 0
2 years ago
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