1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Salsk061 [2.6K]
2 years ago
11

G dixon company produced 6,000 units of product that required 1.5 standard hours per unit. the standard fixed overhead cost per

unit is $0.50 per hour at 10,000 hours, which is 100% of normal capacity. determine the fixed factory overhead volume variance.
Business
1 answer:
sweet [91]2 years ago
3 0
Given:
Actual Production 6,000 units @ 1.5 standard hours per unit.
Budgeted hours: 10,000 
Fixed overhead cost per unit is $0.50 per hour.

6000 units * 1.5 std. hrs/unit = 9,000 hours

Actual hours: 9,000 hours * $0.50 per hour = $4,500
Budgeted hours: 10,000 hours * $0.50 per hour = $5,000

Fixed Factory Overhead Volume Variance = $5,000 - $4,500 = $500 UNFAVORABLE. 

It is unfavorable because the production is inefficient. It is more favorable if the produced units are higher than 6,000 units and the actual hours of production are more than the budgeted hours of production. 
You might be interested in
Direct material budget. Dawson Co. produces wine. The company expects to produce 2,535,000 two-liter bottles of Chablis in 2018.
mars1129 [50]

Answer:

2,558,000 bottles

Explanation:

The formula for computation of the purchase is:

Purchase in units = Usage + Desired ending material inventory units − Beginning inventory units.

In format that will be:

Beginning inventory   54,000

Plus: Purchases.........2,558,000

Less:ending inventory <u>77,000</u>

Required For Use......<u>2,535,000</u>

Hence the number of bottles to be purchased in 2018 is 2,558,000

8 0
3 years ago
The following transactions apply to Pecan Co. for 2018, its first year of operations:1. Received $100,000 cash in exchange for i
tankabanditka [31]

Answer:

Pecan Co.

a. Accounting equation: Assets = Liabilities + Equity

Assets: Cash ($100,000 + 300,000 - 100,000 - 150,000 - 69,292) + Land ($100,000) + Accounts Receivable ($260,000) = Liabilities: Bank Loan ($245,708) + Equity: Common stock ($100,000) + Retained Earnings ($260,000 - 150,000 - 15,000)

b1: Income Statement

Service Revenue       $260,000

Operating expenses    150,000

Interest expense            15,000

Net income                  $95,000

Balance Sheet

Cash                                 $80,708

Accounts Receivable      260,000

Land                                 100,000

Total assets                  $440,708

Bank Loan                    $245,708

Common stock               100,000

Net income                      95,000

Total liabilities+equity $440,708

b2. The interest expense for 2019 is $15,000 ($300,000 * 5%)

The interest expense for 2020 is $12,285.40 ($300,000 +15,000 - 69,292) * 5%.

Explanation:

a) Data and Calculations:

Cash $100,000 + 300,000 - 100,000 - 150,000 - 69,292 = $80,708

Accounts Receivable $260,000

Land $100,000

Common stock $100,000

Bank Loan $300,000 + 15,000 - 69,292 = $245,708

Service Revenue $260,000

Operating expenses $150,000

Amortization Schedule, using an online financial calculator:

Beginning  Interest              Principal Ending

           Balance                                                       Balance

1 $300,000.00 $15,000.00 $54,292.44 $245,707.56

2 $245,707.56 $12,285.38 $57,007.06 $188,700.50

3 $188,700.50 $9,435.02 $59,857.41 $128,843.08

4 $128,843.08 $6,442.15 $62,850.29 $65,992.80

5 $65,992.80 $3,299.64 $65,992.80 $0.0

6 0
3 years ago
Celestin Manufacturing Company incurred $5,000 of depreciation on its manufacturing equipment during its first year of operation
KengaRu [80]

Answer:

A. $5,000 of depreciation expense on its income statement.

Explanation:

Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.

Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.

It does not included fixed cost like depreciation.

As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.

Therefore, the correct option is

A. $5,000 of depreciation expense on its income statement.

3 0
3 years ago
32. Peter must decide if he should add one more dog to his dog-walking business. What is this decision an
KengaRu [80]

Answer:

Explanation:

b. thinking at the margin

i think  because is is asking for what decision it is

hope this helps some

3 0
3 years ago
Cecelia's government provides for her basic needs. In return, Cecelia works in the factory downtown, as she always has since the
amid [387]
The choices can be found elsewhere and as follows:

<span>A. a market system
B. a planned system
C. a mixed system
D. none of the above

I think the correct answer is option B. </span>Cecelia's government can be considered a planned system. It <span>is an economic </span>system<span> in which inputs are based on direct allocation. Hope this answers the question. Have a nice day.</span>
5 0
3 years ago
Other questions:
  • FICO is a credit score.<br><br> True<br> False
    12·1 answer
  • Keidis Industries will pay a dividend of $3.55, $4.65, and $5.85 per share for each of the next three years, respectively. In fo
    12·1 answer
  • What is the relationship between insurance and successful financial management? Why is insurance important?
    12·2 answers
  • How does increase demand for a product help lower its price to consumers?
    8·1 answer
  • Sergey is lagging behind his proposed research schedule. Desperate to demonstrate that he is making good use of federal grant mo
    6·1 answer
  • If testing cannot be completed any earlier than four days after the prototype has been built, what type of lag exists?
    12·1 answer
  • What would happen to the body if the body temperature continue to decrease during the 10th hour instead of leveling off
    5·1 answer
  • Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by
    10·1 answer
  • Users who do not directly run the organization and have limited access to accounting information are known as ------------ (inte
    10·1 answer
  • What is the pareto-optimal frontier?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!