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Ira Lisetskai [31]
3 years ago
8

Petrus Framing's cost formula for its supplies cost is $1,730 per month plus $11 per frame. For the month of March, the company

planned for activity of 613 frames, but the actual level of activity was 618 frames. The actual supplies cost for the month was $8,670. The activity variance for supplies cost in March would be closest to: Multiple Choice $55 F $55 U $197 U $197 F
Business
1 answer:
Stells [14]3 years ago
7 0

Answer:

-$55  U

Explanation:

For computation of activity variance for supplies cost in March first we need to find the budgeted activity of standard supplies cost and actual activity of standard supplies cost is shown below:-

Budgeted activity of standard supplies cost = Supplies cost + Per frame cost × budgeted Activity frames

= $1,730 + $11 × 613

= $1,730 + $6,743

= $8,473

Actual activity of Standard supplies cost = Supplies cost + Per frame cost × Actual activity frames

= $1,730 + $11 × 618

= $1,730 + $6,798

= $8,528

So, activity variance for supplies cost = Budgeted activity of standard supplied cost - Actual activity of Standard supplies cost

= $8,473 - $8,528

= -$55

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4 0
3 years ago
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 15,700
Andru [333]

Answer:

A) Price       7,080     U

B) Quantity 4,630.5  U

C) Total        11.710,5‬ U

Explanation:

DIRECT MATERIALS VARIANCES

(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance

std cost  $3.45

actual cost  $3.65

quantity 35,400

difference  $(0.20)

(0.2) \times 35,400 = DM \: price \: variance

price variance  $(7,080.00)

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity 36110.00

actual quantity 35400.00

std cost  $3.45

difference 710.00

(710) \times 3.45 = DM \: quantity \: variance

quantity variance  $2,449.50

Total Variance: 2,449.5 - 7,080 = -4.630,5‬

8 0
4 years ago
Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the
slavikrds [6]

Answer:

The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.

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Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own
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Answer:

Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

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Explanation:

Production supervisor salary serves as the overhead cost that is attribute to the production in the manufacturing company, it is direct cost for each department since every department has a supervisor

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