1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
igor_vitrenko [27]
3 years ago
15

A manufactured product has the following information for June. Standard Actual Direct materials (5 lbs. @ $7 per lb.) 39,400 lbs

. @ $7.10 per lb. Direct labor (3 hrs. @ $16 per hr.) 23,100 hrs. @ $16.40 per hr. Overhead (3 hrs. @ $12 per hr.) $ 286,500 Units manufactured 7,800 Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable.
Business
1 answer:
Alinara [238K]3 years ago
4 0

Answer:

price variance      3,940 U

quantity variance 2,800 F

Explanation:

DIRECT MATERIALS VARIANCES

(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance

std cost          $7.00

actual cost  $7.10

quantity      39,400

(7 - 7.10) \times 39,400 = DM \: price \: variance

difference                  $(0.10)

price variance  $(3,940.00)

The difference between std cost and actual cost is negative, we purchased at a higher cost. the variance is unfavorable.

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity         39,000.00 (7,800 manufactured units x 5 lbs per unit)

actual quantity 39,400.00

std cost                       $ 7.00

(39,000 - 39,400) \times 7 = DM \: quantity \: variance

difference             -400.00

quantity variance $ (2,800.00)

We used more lbs than our standard for the output. This means we are not efficient in the use of materials. this variance is unfavorable as well

You might be interested in
Read the following scenario. Then in the table below, match each of the activities to the management by objectives step it repre
Klio2033 [76]

<u>Solution and Explanation:</u>

<u>Setting a Goal = B </u>

Basis the past data and knowledge, 90 seconds is set as target for maximum time to hold .

<u>Developing a Action Plan = A </u>

The contingent call center workers are hired for anytime service and support to ensure hold time is less than 90 seconds .

<u>Reviewing progress = C </u>

In mid of the project, review is done to check how many times hold time exceeded 90 seconds .

<u>Appraising performance = D </u>

It is done at the end post project completion with data and results .

 

5 0
3 years ago
vasily is a manager at a large snack foods company. vasily believes his company would benefit from being larger and thinks the s
prohojiy [21]

Vasily pushes for an acquisition anyway. The reason for this acquisition is principal agent problem.

A conflict of interests between a person or group and the agent appointed to act on their behalf is known as the principal-agent dilemma. It is possible for an agent to do actions that are not in the principal's best interests.

The principal-agent problem is as complex as the range of principal and agent responsibilities. It can happen in any circumstance where the primary or owner of an asset transfers direct control of the asset to a third party or agent.

Agency costs are the possibility that the agent will take actions that are not in the principal's best interests. In order to align priorities and solve a principal-agent problem, the rewards system may need to be changed.

To know more about principal agent:

brainly.com/question/15847415

#SPJ4

3 0
1 year ago
Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundat
aksik [14]

Answer:

b)

Annual Depreciation expense= $58,800

Explanation:

<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>

So we will add the purchase cost to installation  , freight charges.

Cost of assets = 300,000 + 14,000 + 40,000 =$354,000

Annual depreciation = (Cost - Scrap Value)/ Number of years

                                   = (354,000 - 60,000)/5

                                 =$58,800

Annual Depreciation expense= $58,800

8 0
3 years ago
During July, Whitman paid $189,600 to employees for 8,900 hours worked. 4,760 units were produced during July. What is the direc
Marrrta [24]

Answer and Explanation:

The computation of the  direct labor efficiency variance is shown below;

= Standard Rate × (Standard Hours - Actual Hours)

= $22.50 × (4,760 Units × 2 hours per unit - 8,900)

= $13,950 Favourable

Hence, the direct labor efficiency variance is $13,950 favorable

We simply applied the above formula so that the correct amount could come

8 0
3 years ago
Blain Company has $10,000 of accounts receivable that are current, $5,000 that are between 0 and 30 days past due, $3,000 that a
True [87]

Answer:

d. $1050.

Explanation:

We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts

\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]

Balance of the allowance account:  100

The expense will be the adjustment made on the allowance to get the expected balance of 1,150

1,150 - 100 = 1,050

we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.

8 0
3 years ago
Other questions:
  • It is safe to use your bright headlights if there is a car ahead of you within 300 feet. True or False?
    8·2 answers
  • Ads for brita led lightings use comparative advertising to emphasize the benefits of using leds over cfls. the ads emphasize tha
    15·1 answer
  • Country 1 has a gross domestic product (GDP) of $75 billion. The country has a large public sector, which accounts for $25 billi
    10·1 answer
  • What benefits do you gain by developing a stakeholder analysis document?
    6·2 answers
  • Although other countries are finding non-traditional oil reserves and establishing methods of extraction to retrieve them, who i
    8·1 answer
  • The Ethical Dissonance Model helps to evaluate: a. Whether the organization sets an ethical tone at the top b. Whether the organ
    15·1 answer
  • In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the
    7·1 answer
  • What are some simlarities between saving and investing?
    14·1 answer
  • Raphael lives in Detroit and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of t
    8·1 answer
  • A positive consequence of organizational distress may take the form of: a. functional turnover. b. absenteeism. c. employee work
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!