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Anna11 [10]
4 years ago
7

The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $142

,600 Fixed factory overhead 35,000 Standard: 6,000 hrs. at $28 168,000 If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $182,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $3.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Business
1 answer:
Damm [24]4 years ago
5 0

Answer:

1. $4,400 Favorable

2. $14,000 Unfavorable

3. $9,600 Unfavorable

Explanation:

The computation of given question is shown below:-

1. Variable factory overhead Controllable Variance

= $142,600 - 6,000 × 24.5

= $142,600 - $147,000

= -$4,400

= $4,400 Favorable

Where, 24.5 = standard rate - fixed overhead rate

= $28 - $3.5

= $24.5

2. Fixed factory overhead volume variance

= $35,000 - 6,000 × $3.5

= $35,000 - $21,000

= $14,000 Unfavorable

3. Total factory overhead cost variance

= ($142,600 + $35,000) - (6,000 × $28)

= $177,600 - $168,000

= $9,600 Unfavorable

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The vital component of marketing is promotion.

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5 0
2 years ago
Groups of related business activities such as the acquisition of merchandise and payment of vendors are called:_________
liraira [26]

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3 0
1 year ago
The risk-free rate of return is 2.5 percent; the expected rate of return on the market is 7 percent. Stock X has a beta coeffici
zvonat [6]

Answer:

  • Stock is overpriced/ overvalued.
  • Sell if you own it.
  • Don't buy if you don't.

Explanation:

Use CAPM to find the required return on the stock:

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 2.5% + 1.3 * (7% - 2.5%)

= 8.35%

Price based on Constant Dividend Growth Model (CDGM):

Price = Next dividend / (Required return - growth rate)

Next dividend = 1.40 * ( 1 + 4%)

= $1.456

Price = 1.456 / (8.35% - 4%)

= $33.47

<em>Stock is selling for $35. It is overvalued. Don't buy the stock. Sell if you have the stock. </em>

4 0
3 years ago
The price of notebooks is $5, and at that price consumers demand 12 notebooks. If the price rises to $7, consumers will decrease
Vitek1552 [10]

Answer:

3

Explanation:

We are asked to use the midpoint formula.

Here, instead of dividing the change in values by the old value as in the normal elasticity calculation, we use the average of the two.

Mathematically:

Price elasticity of demand according to midpoint formula is :

{Q2 - Q1 / (Q2 + Q1) ÷ 2] × 100%} ÷ {[P2 - P1/ (P2 + P1) ÷ 2] × 100}

Price changed from 5 to 7. The midpoint of 5 and 7 is the average = (5+7)/2 = 6

% change in price in this case is (7-5)/6 * 100 = 100/3 = 33.33%

% change in quantity:

We first find the average = (12+4)/2 = 16/2 = 8

% change = (4-12)/8 * 100 = -100%

The elasticity of demand is thus -100/33.33 = 3

7 0
3 years ago
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Paul [167]
<span>Answer : Intrapreneurial
   
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