Answer:
$9,000 unfavorable
Explanation:
The computation of the total fixed overhead variance is shown below:
= Actual fixed overhead costs - Budgeted fixed overhead
where,
Budgeted fixed overhead is $360,000
And, the Actual fixed overhead cost is computed below:
= Actual fixed overhead × Actual production ÷ budgeted production
= $360,000 × 11,700 units ÷ 12,000 units
= $351,000
Now put these values to the above formula
So, the value would equal to
= $351,000 - $360,000
= $9,000 unfavorable
Answer: Price is $7 when sale is 5000 and $6 when sale is 7,500 units.
Explanation:
George will breakeven when his price is just sufficient to cost the total cost.
If George sells 50% more, then his sales is 7,500 units.
George will breakeven when his price is just sufficient to cost the total cost.
When sales is 5000 units price is $7. When sales is 7,500 units price is $6.
Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
Answer:
The correct answer is D: Manufacturing overhead= $45500
Explanation:
Giving the following information, we need to calculate the amount of manufacturing head.
Direct labor= $11000
Direct labor is 40% of prime costs
Total manufactured cost is= $73000
First, we need to calculate the direct material:
Prime cost= direct material + direct labor
If direct labor is 40% of prime costs, then:
Direct material=(11000*60/40=16500
Now, the manufactured cost formula is:
Manufactured cost= direct material + direct labor + manufacturing overhead
By rearranging the formula:
<u>Manufacturing overhead= Manufactured costs - direct material - direct labor= 73000- 16500-11000=$45500</u>
Answer:
$50
Explanation:
Dividend discount model (DDM) is used to calculate intrinsic value of a stock. Since the dividends are expected to grow indefinitely, the formula will be as follows;
Price (P0) = D1 / (r-g)
where D1 = Next year's dividend = 2.50
r = required rate of return = 12% or 0.12 as a decimal
g = dividend growth rate = 7%
Price (P0) = 2.50/(0.12-0.07)
P0 = 2.50 /0.05
P0 = $50
