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Levart [38]
3 years ago
5

Jefferson Co. uses the following standard to produce a single unit of its product: Variable overhead $6 (2 hrs. per unit @ $3/hr

.). Actual data for the month show variable overhead costs of $150,000 and 24,000 units produced. The total variable overhead variance is:
A. 6,000F

B. 6,000U

C. 78,000U

D. 78000F

E 0.
Business
1 answer:
tankabanditka [31]3 years ago
7 0

Answer:

B. 6,000U

Explanation:

The total variable overhead variance shall be calculated using the following formula:

Variable overhead variance=(Actual units produced*Standard hours per unit* Standard rate per hour) - (Actual variable production overhead cost of actual production)

Standard rate per hour=$3

Standard hours per unit=2

Actual units produced=24,000

Actual variable production overhead cost of actual production=$150,000

Variable overhead variance=(24,000*2*3-150,000)

                                              =(144,000-150,000)

                                              =$6,000U

So the answer is B. 6,000U

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3 years ago
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies sug
IgorLugansk [536]

Answer:

1. The present yearly net operating loss is $65,700

2. Break even point in unit sales is 27,690 units, in dollars sales $2,575,170.00

3. The maximum annual profit that the company can earn is $23,300, at 30,500 units with a selling price per unit of $91

Explanation:

At breakeven point, the cost and revenue of the company are same such that the company neither a profit nor a loss. Operating profit or loss is the difference between the revenue and the cost of the company.

The cost of the company usually consist of the fixed and variable elements.

Given that the company’s present selling price is $93 per unit, and variable expenses are $63 per unit. Fixed expenses are $830,700 per year with present annual sales volume (at the $93 selling price) is 25,500 units

Hence the operating profit or (loss)

= $93 * 25,500 - ($63 * 25,500 + $830,700)

= $765,000 - $830,700

= ($65,700)

A loss of $65,700

Break even point in unit sales = Fixed costs / (Selling price per unit – Variable cost per unit)

= $830,700 / ($93 - $63)

= $830,700 / $30

= 27,690 units

In dollar sales

= $93 * 27,690

= $2,575,170.00

if the marketing studies are correct then the new selling price per unit will be

= $93 - $2

= $91

The units sold will be

= 5000 +  25,500

= 30,500 units

The maximum profit to be made

= $91 * 30,500 - ($63 * 30,500 + $830,700)

= $854,000 - $830,700

= $23,300

6 0
3 years ago
Specifics
bogdanovich [222]

The cost of buying and leasing is: A. buy: 14720; lease: 14996.

<h3>Cost of buying and leasing</h3>

1. Cost of Buying:

Total loan payment= 385× 48 months

Total loan payment= $18,480

Cost of buying = Down Payment + Loan payment + ( Opportunity cost ×Down payment× X term in years ) - Ending loan estimated value

Cost of buying= 2,000 +$18,480 + (2000 × 0. 03× 4 years ) - 6,000

Cost of buying= 2,000 + $18,480+240-6,000

Cost of buying= 14,720

2. Leasing:

Total Lease payment=295× 48 months

Total lease payment= $14,160

Leasing= Total lease payment + End of lease charges + ( Security deposit × Opportunity cost× X term in years))

Leasing= $14,160+ 800 + (300 ×0.03×4)

Leasing= $14,160+ 800 +36

Leasing=14996

Therefore the cost of buying and leasing is: A. buy: 14720; lease: 14996.

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