Answer:
total budgeted costs = $189,400
budgeted production = 1,000 units
standard rate = $189,400 / 1,000 = $189.40 per unit
total actual costs = $197,200
actual production = 1,120 units
actual rate = $197,200 / 1,120 = $176.07 per unit
- total fixed overhead variance = actual overhead costs - budgeted overhead costs = $197,200 - $189,400 = $7,800 unfavorable. The actual overhead expense was higher than the budgeted.
- controllable variance = (actual rate - standard rate) x actual units = ($176.07 - $189.40) x 1,120 units = -$14,929.60 favorable. The actual overhead rate was lower than the standard rate, that is why the variance is positive.
- volume variance = (standard activity - actual activity) x standard rate = (1,000 - 1,120) x $189.40 = -1,120 x $189.40 = -$212,128 favorable. More units where produced than budgeted, that is why the variance is positive.
All of the above. If it's just one it would be D.
Answer:
C. Return to the old allocation method, which produces a lower amount of estimated cost.
Explanation:
Base on the scenario been described in the question, after Harry's co implemented an activity base costing system, this is as a result of the ABC allocations, the cost of one of the company's products was determined to be above its current selling price, also, they can not increase price due to the competition it will better for them to return to the old allocation method, which produces a lower amount of estimated cost. That will be the best thing to do
Answer:
a i had the same question
Explanation:
Answer:
A.12,500
B. 12 times
C.If The MBC storage tanks have a capacity of 15,000 gallons there is no need of expanding the storage tanks reason been that the Economic order quantity is lesser than the storage capacity of the tank.
D. 5,000 gallons
Explanation:
a.)
=√2×Demandquantity×Orderingcost÷Holding cost
=√2×150,000×250÷480
=12,500
b.)
=Demand quantity÷ Economic Ordering quantity
=150,000÷12,500
=12 times
c.) If The MBC storage tanks have a capacity of 15,000 gallons there is no need of expanding the storage tanks reason been that the Economic order quantity is lesser than the storage capacity of the tank.
d.) The reorder point can be calculated as follows;
= Lead time× Average
Average demand quatity =1,500/300
Reorder point 10×500
=5,000 gallons