Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour.
A)
Direct labor price variance= (SR - AR)*AQ
Direct labor price variance=(17 - 16.5)*2,800= 1,400 favorable
B) Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (3,000 - 2,800)*17= 3,400 favorable
C) Total direct labor variance= -1400 - 3400= -4,800 favorable
Answer:
Timing Risk
Explanation:
Timing risk is a type of investment risks that a trade will not be performed at the best market price.
Answer:
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $3,000
To Interest payable A/c $3,000
(Being interest is recorded)
The computation of the interest expense is shown below:
= Principal × rate of interest × number of months ÷ total number of months in a year
= $125,000 × 6% × (4 months ÷ 12 months)
= $2,500
The four-month is calculated from the September 1 to December 31
$20,995
Cost of goods sold:
17,500 Beginning inventory
+19,252 Plus purchased inventory
- $15,757 Minus ending inventory
=20,995 Cost of Goods Sold
