What does the process of specialization do for an economy?

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhea

n200080 [17]

Answer:

Variable overhead efficiency variance $ 8,018  Unfavorable

Explanation:

Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance

Hours

2,700 units should have taken (2,700 × 3.20) 8640

but did take (actual hours) 9,400

Efficiency variance in hours 760 unfavorable

standard variable overhead cost per hour $10.55

Variable overhead efficiency variance $ 8,018 Unfavorable

Variable overhead efficiency variance $ 8,018  Unfavorable

8 0

3 years ago

1. The following are categories of accounts reported in the financial statements: A. Current Assets E. Long-Term Liabilities B.

kondaur [170]

Answer:

E, B, D, C, A, G, H, F

Explanation:

Bonds Payable - Long-term liabilities

Buildings - Fixed assets

Accrued Liabilities - Current liabilities

Intangibles - Intangible assets

Inventory - Current assets

Unearned Rent Revenues - Revenue; advanced paid rentals

Accumulated Depreciation - Expense

Retained Earnings - Stockholder's equity

3 0

3 years ago

When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. Th

s344n2d4d5 [400]

Answer:

The correct answer is have a low value-to-weight ratio.

Explanation:

Products that have low weight-value ratios (for example, coal, iron ore, bauxite and sand) also have low storage costs but high movement costs as a percentage of their sales price. Inventory management costs are calculated as a ration of the value of the product. Low product value means low storage cost, since inventory management costs are the dominant factor in storage cost. When the value of the product is low, transport costs represent a high proportion of the sale price.

Consequently, companies that deal with products of low value for weight frequently try to negotiate more favorable transport rates; rates are generally lower for raw materials than for finished products of the same weight.

6 0

3 years ago

Read 2 more answers

Erin collides her 940-kg Mazda Miata into the rear of a 2460-kg pick-up truck which was at rest at the light on Lake Avenue. The

BigorU [14]

Answer:

3.46 m/s

Explanation:

This is actually a Physics question and not a Business question.

According to the property of conservation of momentum, the speed of the Mazda before the collision multiplied by the mass of the Mazda must equal the speed after the collision multiplied by the mass of both cars:

$m_1v_1=(m_1+m_2)*v_2\\940*12.5=(940+2460)*v_2\\v_2= 3.46\ m/s$

The post-collision speed of the two entangled cars is 3.46 m/s.

4 0

3 years ago

An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A second-hand

Arlecino [84]

Answer:

The second hand machine should be chosen given that the NPV value is lower than that of the new system

Explanation:

cost of second hand system = $75,000

cost of new system = $150,000

New system can decrease labor hours by 20%

number of useful life ( for both systems ) = 5 years

market value of second hand system after 5 years = $20,000

market value of new system after 5 years = $50,000

Second hand system can operate for 8 hours/day for 20 days = 8*20 = 160 hours per month = 1920 hours per year

labor cost = $40 per hour

MARR = 1% per month

Determine the system that should be recommended

we have to calculate the NPV for both options

for Option 1 ( second hand system )

labor cost = 40 * 1920 = $76800

cost of purchase = $75,000

MARR = 12% p.a.

residual value = $20000

First step : calculate the PV of maintenance cost = $76800× PVAF(12%, 5 years) = $276864

Next : calculate the PV of residual value =$20000× PVF(12%, 5th year)

= $11340

NPV = (75000 + 276864 - 11340 ) = $340,524

for Option 2 ( New Machine )

Labor cost = ( 1920 × 0.8 )hours ×40 = $61440

cost of machine = $150000

Pv of labor cost = 61440×3.605 = $221491.20

Residual value = $50,000

Hence ; PV of residual value = 50000 × 0.567 = $28350

Finally calculate the NPV = (150000+221491.20-28350) = $343,141.20

7 0

3 years ago