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12345 [234]
3 years ago
6

Balt Company maintains a standard cost system; as such, all inventories, including materials, are carried on the books at standa

rd cost. Last period, Balt used 6,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. During the period, Balt purchased 3,000 pounds of Material H. The company spent $20,000 during the period to purchase material H. Required: 1. Calculate the direct materials purchase-price variance for the period, rounded to the nearest dollar. 2. Calculate the direct materials usage variance for the period, rounded to the nearest whole dollar.
Business
1 answer:
g100num [7]3 years ago
5 0

Answer:

1. Purchase price variance = $2,490 Favorable

2. Direct Material Usage Variance = $3,000 Unfavorable

Explanation:

Provided information, we have

Standard Material per unit = 7 pounds

Actual Units produced = 800 units

Standard units = 800 \times 7 = 5,600 pounds

Actual units = 6,000 pounds

Standard Price per pound = $7.50

Actual price = \frac{20,000}{3,000} = $6.67

1. Purchase price variance = (Standard Price - Actual Price) \times Actual Quantity Purchased

= ($7.50 - $6.67) \times 3,000 = $2,490 Favorable

As the price at which units are purchased is less than standard, the variance is favorable.

2. Direct Material Usage Variance = ( Standard Quantity - Actual Quantity) \times Standard Rate

= (5,600 - 6,000) \times $7.50

= - $3,000 Unfavorable

As we can see, the actual quantity used is higher than the standard quantity, therefore the variance is unfavorable.

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What are two inputs to the solution vision?
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Customer feedback and Strategic Themes are two inputs to the solution vision.

A high-level architectural plan that addresses present company needs is a solution vision. These requirements include the architectural layer changes. As modifications in architecture are never the intended goal alone, it always has business benefit.

The Vision provides a summary of the developed Solution's potential future state. It reflects the features and capabilities that have been offered to address the needs of customers and stakeholders.

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3 0
2 years ago
Bond payments are generally more predictable than stocks because:_______.
lianna [129]

The bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Bonds refers to the promise by a borrower to pay the lender his/her principal and the interest on the loan given.

  • Bonds is an instrument used by company as an alternatives to taking a loan from banks.

  • Generally, the bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Therefore, the Option C is correct.

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4 0
2 years ago
Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,
White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}

AW_C=1,000,000(A/P, 8% , 10)

⇒ AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}

⇒ AW_2=2,000,000(A/P, 8%, 20)

⇒ AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}

⇒AW_C_2 = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0
2 years ago
Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets
alekssr [168]

Answer:

$7.15

Explanation:

Calculation for Other The cost of wages and salaries and other overhead that would be charged to each bouquet made is:

Wages and salaries charged to each bouquet produced = (60%*$180,000)+(50%*$70,000)/20,000 bouquet

Wages and salaries charged to each bouquet produced = $108,000+$35,000/20,000 bouquet

Wages and salaries charged to each bouquet produced = $143,000/20,000 bouquet

Wages and salaries charged to each bouquet produced = $7.15

Therefore The cost of wages and salaries and other overhead that would be charged to each bouquet made is:$7.15

7 0
3 years ago
What are extension strategies?
sergeinik [125]

Answer:

Below:

Explanation:

An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.


Hope it helps...

It’s Muska..≧◔◡◔≦

8 0
2 years ago
Read 2 more answers
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