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Gennadij [26K]
3 years ago
5

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president h

as asked that you review the company’s costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis you determine the following cost formulas and gathered the following actual costs and data for March:

Description Cost Formula Actual Cost
Utilities $20,600 plus $0.10 per machine hour $24,200
Maintenance $40,000 plus $1.60 per machine hour $78,100
Supplies $0.30 per machine hour $8,400
Indirect labor $130,000 plus $0.70 per machine hour $149,600
Depreciation $70,000 $71,500

During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March.
Required:
1. Prepare a report showing the activity variances for March. Explain what these variances mean.
2. Prepare a report showing the spending variances for March. Explain what these variances mean.
Business
1 answer:
lana [24]3 years ago
3 0

Answer:

Explanation:

Variance analysis studies the relationship between actual and budgeted cost for business activities. Variance analysis helps the management in two ways;

  • Favorable
  • Unfavorable

Favorable - if the actual cost incurred is less than the budgeted cost, the difference amount is a saving for the company.

Unfavorable - if the actual cost is more than the budgeted cost, the difference is an extra expenditure for the company.

Flexible budget;

  • The flexible budget is prepared at different levels of volume that was initially projected by the master budget.
  • It is highly styled and more useful than the master budget.

The report showing the Activity and Spending  Variances for march is given in the file attached below, in other not to cause confusion. Thank you.

Download docx
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Furkat [3]

Answer:

The answer is B. corporate bond issued by a computer manufacturer

Explanation:

Capital in business is the money committed to the business by its owner or owners. Capital can also be from a borrowed fund e.g loan

Bond is a long term loan issued to finance a capital project.

Therefore, the corporate bond issued by a computer manufacturer is a capital.

Option A which is a computer programmer is a human asset.

Option C is an inventory (Current assets). This is used to make computer chips.

Option D is an asset

6 0
3 years ago
Operational effectiveness refers to: Group of answer choices matching the benefits of a successful position while maintaining an
Harrizon [31]

Answer:

refers to performing the same tasks better than rivals perform them.

Explanation:

Operational effectiveness is refers to the situation in which the things excel. It helps in the progression of a work and brings change in the output of the company. When the inputs of the organization are used at the best possible way to bring the maximum outputs out of them, the company is said to be experiencing the operational efficiency. In this process the company excels and leaves the competitors behind.

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You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The b
nevsk [136]

Answer:

The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!

8 0
3 years ago
Ace Industries has a current assets equal to $3 illion . the company's current ratio is 1.5. and its quick ratio is 1.0.
zavuch27 [327]

Answer:

$2,000,000

$1,000,000

Explanation:

We know that

Current ratio = Total Current assets ÷ total current liabilities  

1.5 = $3,000,000 ÷ total current liabilities  

So, the total current liabilities would be

= $2,000,000

And

Quick ratio = Quick assets ÷ total current liabilities  

1.0 = Quick assets ÷ $2,000,000

Quick assets = $2,000,000

So, the inventory would be

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PSYCHO15rus [73]

Answer:

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Coupon rate = Bond yield amount ÷ Par value of the bond = $63.242 ÷ $1,000 = 0.063242, or 6.32%

Therefore, the coupon rate on the bonds must be 6.32%.

4 0
3 years ago
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