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Korolek [52]
3 years ago
15

Because budgeted fixed costs remain the same regardless of production volume, a(n):________ variance occurs when there is a diff

erence between actual volume of production and the standard volume of production.
Business
1 answer:
blsea [12.9K]3 years ago
7 0

Answer:

A production volume variance

Explanation:

A production volume variance occurs when there is a significant difference between the actual volume of products manufactured and the budgeted or standard volume of production. Therefore, a production volume variance can be harnessed by businesses in order to measure the production cost of products against the budgeted fixed cost.

The production volume variance can be calculated by difference between actual volume of production and the standard volume of production, multiplied by the overhead rate that have been budgeted.

So, when calculating the production volume variance, if the actual volume of production is lower than the budgeted or standard volume of production, then the production volume variance is not favorable.

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JT Inc. produces gourmet frozen dinners for the airline industry. JT has fixed costs of $200,000 and variable costs of $8 per fr
nadezda [96]

Answer:

The operating profit for this year amounts to $ 550,000

Explanation:

Operating Profit is computed below as:

Operating Profit = Revenue - Expense (Fixed Cost + Variable Cost)

                           = $1,950,000 - ($200,000 + $1,200,000)

                           = $1,950,000 - $1,400,000

                          = $550,000

Revenue = Number of frozen dinners × Selling Price

               = 150,000 × $13

               = $1,950,000

Variable Cost = Number of frozen dinners × Cost per frozen dinner

                       = 150,000 ×  $8

                       = $1,200,000

6 0
3 years ago
10. The overall levels of income, employment, and prices are determined by the spending and production decisions
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Answer:

A. Households

B. Businesses

C. Government

Explanation:

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7 0
3 years ago
Read 2 more answers
Assume that the price of a European call expiring in six-month with a strike price of $30 is $2. Suppose that the underlying sto
Komok [63]

Answer:

correct option is c. $2.51

Explanation:

given data

strike price of $30 = $2

underlying stock price = $29

dividend = $0.50

risk-free rate = 10%

solution

we use here pit call parity  that is

c - p = s - k e^{-rt} -D    .....................1

S is current price and c is call premium and r is rate and t is time

so price of put p will be

p = c-s + k e^{-rt} + D

put here value and we get

p  = 2 -29 + 30  e^{-0.1*0.5} + 0.5  e^{-0.1*2/12}  + 0.5 e^{-0.1*5/12}

p  = 2.508

p = $2.51

so correct option is c. $2.51

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3 years ago
The labor force of many more developed countries (mdcs) may experience higher taxes over the next half century to provide essent
aleksklad [387]
<span>Higher taxes will provide to the growing number of senior citizens. There are much more elderly citizens now than there were 50 years ago with the baby boomers aging into their golden years. In order to provide services for these individuals, taxes could likely increase to cover the increasing costs.</span>
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3 years ago
A kitchen fire at a favorite restaurant caused the owner to temporarily close. This is an example of which of the following risk
Ipatiy [6.2K]

Answer:

Uncertainty-based risk

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The restaurant was temporarily closed because of fire, which is an uncertainty.

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3 years ago
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