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Gekata [30.6K]
4 years ago
11

Firecracker Company has developed the following standards for one of its products. Direct materials: 15 pounds × $16 per pound D

irect labor: 4 hours × $24 per hour Variable manufacturing overhead: 4 hours × $14 per hour The following activity occurred during the month of October: Materials purchased: 10,000 pounds costing $170,000 Materials used: 7,200 pounds Units produced: 500 units Direct labor: 2,300 hours at $23.60/hour Actual variable manufacturing overhead: $30,000 The company records materials price variances at the time of purchase. The direct materials price variance is
Business
1 answer:
Natasha_Volkova [10]4 years ago
7 0

Answer:

(-$10,000) Unfavorable

Explanation:

Direct materials:

Quantity = 15 pounds  

Standard price = $16 per pound

Actual price = Purchase Price ÷ Purchase quantity

                    = 170,000 ÷ 10,000

                    = 17

Material price variance:

= Actual purchase quantity × (Standard price - Actual price)

= 10,000 × ($16 - $17)

= 10,000 × (-$1)

= (-$10,000) Unfavorable

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Acel Co. uses the allowance method to account for bad debts. In January, Acel determined that it could not collect $400 from CTR
Evgesh-ka [11]

Based on the fact that CTR, Inc sent a check to Acel Co, there will be a debit to b. Accounts receivable is debited to reinstate the CTR account.

<h3>Which account will be debited?</h3>

The Accounts Receivable account will be debited by the Allowance for Doubtful Accounts to bring back the written off debt.

The Account Receivable account will then be credited to cash to account for the cash being received.

In conclusion, option B is correct.

Find out more on bad debts at brainly.com/question/26036981

3 0
2 years ago
The primary advantage of using the dividend growth model to estimate a company's cost of equity is: A) the ability to apply eith
natta225 [31]

Answer:

B

Explanation:

The dividend growth model is a method of determining the value of a company using its dividend.

Forms of the dividend growth model include

  1. The Gordon dividend growth model
  2. The 2-stage dividend growth model
  3. The 3-stage dividend growth model
  4. The H-model

The advantages of the dividend growth model

  • it is easy to calculate

disadvantages of the dividend growth model

  • It is not appropriate when the investor wants to take a control perspective
  • It cannot be used for a firm that doesn't pay dividends
6 0
3 years ago
A company has recorded the last five days of daily demand on their only product. Those values are 120, 125, 124, 128, and 133. T
olchik [2.2K]

Answer:

The correct option is C. 630.

Explanation:

From the question, can have the following:

Lead time in days = 5 days

Average daily sales = (120 + 125 + 124 + 128 + 133) / Lead time = 630 / 5 = 126

Since the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, the reorder point (R) can be calculated as follows:

Reorder point (R) = Average daily sales * average lead time in days = 126 * 5 = 630

Therefore, the correct option is C. 630.

6 0
3 years ago
NH 2015 is the only amusement park in Goleta (it has monopoly power). The owners have decided to enact a two-part tariff: a fixe
maxonik [38]

Answer:

The profits will be "24.5".

Explanation:

As we know,

Monopoly Power, MC=\frac{dC(q)}{dq}

                                      =11

Withe either two-part tariff,

P = MC

and,

Profit = CS (Costumer surplus)

Now,

p=18-q=11

and, q = 7

When,

q = 0 and p = 18

Profit = (\frac{1}{2})\times (18-11)\times 7

⇒       = \frac{1}{2}\times 7\times 7

⇒       = \frac{1}{2}\times 49

⇒       = 24.5

4 0
3 years ago
Strongheart enterprises anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. actual
KIM [24]

Answer:

Cost variance is $6,400 unfavorable

Explanation:

Cost variance shows that how much under/over valued is the budget. It measures the difference of the actual cost incurred and the budgeted cost.

Earned value is the value of budgeted cost which is calculated using actual activity. It is the cost that should be incur on budgeted units.

Earned value can be calculated as follow:

Earned value = Actual Activity x Budgeted rate = $27,500 x $6 = $165,000

Formula for cost variance is as follow

Cost Variance = Earned Value - Actual Value

Cost Variance = $165,000 - $171,400

Cost Variance = -$6,400

It is an unfavorable variance because company incurred more cost than it should be.

7 0
3 years ago
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