What does an increase in the consumer price index indicate?

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: Direct materials standard 15 pounds p

Hitman42 [59]

Answer:

The direct material quantity variance is $10,800 favourable. (the options in the question are not correct).

Explanation:

The direct materials quantity variance represents a difference between what was actually produced and the standard or idea that should have been produced especially with regards to the use of direct materials.

To calculate material quantity variance

Step 1:Calculate the Standard Usage of Material

Formula= (Actual Units of Finished goods Purchased x Standard Price of Material per unit)

= 4,000 units x 15 Pounds

= 60,000 Pounds

This means the standard material usage is 60,000 pounds

Step 2: Now calculate the Direct Material Quantity Variance

Formula= (Standard Material Usage - Actual Material Usage) x The Standard Price per Unit of Material

= 60,000 pounds (computed in step 1) - 40,000 pounds (given in the question)

= 20,000 pounds x $0.54

=$10,800

Since the standard Material is higher than the actual material usage, it means that the answer is as follows;

The direct material quantity variance is $10,800 favourable.

Kindly note that the multiple options in the question above are for a different set of figures and a different question.

6 0

2 years ago

Match each of the following terms with their definition - Before-tax cost of debt - Cost of preferred stock - Cost of Common Sto

fomenos

Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒ D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

3 0

2 years ago

Suppose the benefit of owning a painting, in terms of your personal enjoyment, is worth 5% of the value of the painting. If the

Julli [10]

Answer:

7%

Explanation:

It would grow by 7% each year which is the rate of return on stocks

4 0

3 years ago

Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $

AlladinOne [14]

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

5 0

2 years ago

What is advertising?

Mashutka [201]

Answer:

It’s when you convince people to buy a product, or service. Marketing is used in this.

Explanation:

3 0

3 years ago