Grouper Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business
1 answer:
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Before information shows is the correct and complete question.
The Lopez Company use a standard costing in its manufacturing plant for the auto part. The standard cost of particular auto part based on a denominator level of a 4.000 output unit per year. included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour.
Actual output produced was 4.400 units.
Variable manufacturing overhead incurred was $245.000.
Fixed manufacturing overhead incurred was $373.000.
Actual machine-hours were 28.400.
Prepare the analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.
Additional diagram attached to this question is displayed in the first image below.
Answer:
Explanation:
By using a columnar method, the analysis of all the variance & fixed manufacturing overhead varaince can be computed as follows:
Variable manufacturing overhead analysis:
Actual cost Incurred: ║ Actual input × Budgeted ║ Allocated: Budgeted
Actual input × Actual rate Input for actual output
rate × Budgeted rate
245000 28400×$8.00 = 227200 (4400×6hrs×$8)
= 211,200
17800 U 16800 U
Spending Variance Efficiency Variance
33800 U
Flexible Budget Variance
Hence;
The spending Variance = $17,800 U
Efficiency Variance = $16,000 U
Flexible Budget Varaince = $33800 U
where; F = Favourable & U = Unfavourable
<u>For the fixed Manufacturing Overhead:</u>
Actual cost Incurred: ║ Flexible Budget Lump ║ Allocated: Budgeted
Actual input × Actual sum regardless of the Input for actual output
rate output level × Budgeted rate
373000 4000×6hrs×15 = 360000 (4400×6hrs×$15)
= 396000
13000 U 36000 F
Spending Variance/ Production-Volume
Flexible budgeted variance Variance
23000 F
Over allocated fixed
Overhead
Hence;
The spending Variance = $13000 U
The production Volume Variance = $36,000 F
Over allocated fixed overhead = $23000 F
where; F = Favourable & U = Unfavourable
NOTE: To have a better view of the above computation in a table format, refer to the second and the third diagram in the image below.
Answer:
The correct answer is A. $18,276
Explanation:
First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.
You calculate the total amount saved for each year, using the formula:
Where
is the total amount in the savings account for this period.
is the total amount in the savings account from the previous period.
is the interest rate.
are the annual deposits being made into the savings account.
Therefore for the first year you'd do:
For the second year:
And so on. You can help yourself calculate the value of this series using programs like Excel.
I have attached an Excel file that has a table with the savings values for each of the 25 years.
So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):
In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.