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3 years ago

The following data relate to direct labor costs for the current period:

Business

1 answer:

emmainna [20.7K]3 years ago

4 0

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs 9,000 hours at $5.50

Actual costs 8,500 hours at $5.75

we have two formulas to calculate for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

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Broker must obtain the signature of the seller to effect a contract.

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3 years ago

Mortensen Industries, which uses a process-costing system, adds material at the beginning of production and incurs conversion co

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Answer: 60%

Explanation:

Find the ending work in process.

Materials are complete at inception so the Equivalent units of Materials represent the total units.

Ending WIP will therefore be:

= Materials EUP - Units started and completed

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Conversion EUP = Total started and completed + (x% * Closing WIP)

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3 years ago

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $120,000. The machine would

almond37 [142]

Answer:

7.5%

Explanation:

Cost savings :

= Equipment cost - New machine cost

= 30,000 - 12,000

= 18,000

Depreciation per year :

= Cost of automated bottling machine ÷ Useful years

= 120,000 ÷ 10

= 12,000

Simple rate of return:

= (Cost savings - Depreciation of new equipment) ÷ (cost - salvage of old)

= (18,000 - 12,000) ÷ (120,000 - 40,000)

= 6,000 ÷ 80,000

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3 years ago

A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income f

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Answer:

Net income for the current period is $2,350.

Explanation:

Calculation of Net Income for the Current Period.

$ $

Fees earned 7,250

Less Expenses :

Rent expense 1,300

Salaries expense 2,300

Utilities expense 345

Insurance expense 650

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Net Income / (Loss) 2,350

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3 years ago

When the utility function for a risk-neutral decision maker is graphed (with monetary value on the horizontal axis and utility o

andreev551 [17]

Answer:

The correct answer is letter "D": straight line.

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3 years ago