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taurus [48]
3 years ago
13

Wexell Framing's cost formula for its supplies cost is $1,230 per month plus $10 per frame. For the month of October, the compan

y planned for activity of 592 frames, but the actual level of activity was 597 frames. The actual supplies cost for the month was $7,050. The activity variance for supplies cost in October would be closest to:
Business
1 answer:
Gnoma [55]3 years ago
7 0

Answer:

The correct answer is $50 (unfavorable).

Explanation:

According to the scenario, computation of the given data are as follow:-

Planning supply activity cost = (592 × $10) +$1230

= $7,150  

Actual supply activity cost = (597 × $10) + $1230

= $7,200

We can calculate the activity variance for supply cost by using following formula:-

Activity variance for supplies cost = Actual activity cost – Planning activity cost  

= $7,200 - $7,150

= $50  ( positive shows unfavorable)

You might be interested in
In economics, if a good is inelastic,
Mariulka [41]

In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes. </u>

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

<h2>Further Explanation; </h2>
  • Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
  • When the price of an inelastic good changes, its supply and demand is unaffected.
  • Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.
<h3>Demand and supply in determination of market price </h3>
  • Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  
  • One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
  • Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.  
  • This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
  • However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

<h2>Learn more about: </h2>
  1. Demand and supply; brainly.com/question/6749722
  2. Effect of supply and demand on market price: brainly.com/question/3522474

Level; High school  

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

8 0
3 years ago
Read 2 more answers
Boyd's Bicycle Sales and Repairs Co. offers a 6-month warranty on all new bicycle purchases. Based on history, Boyd determines t
guapka [62]

Answer:

Boyd will record Warranty Expense in the amount of $400 for the month.

Explanation:

Warraty expense is an obligation on the business because business idmliable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Sales = $20,000

Warranty repair = 2% of Sales

Warranty Expnese = Sales x Warranty repairs percentage

Warranty Expnese = $20,000 x 2%

Warranty Expnese = $400

4 0
3 years ago
According to the rule of 72, if holly invests $200, $400, and $1000 into three separate accounts with the same interest rate, wh
777dan777 [17]
It will double at the same rate
7 0
3 years ago
Read 2 more answers
A manufacturing company is considering a capacity expansion investment at the cost of $258,388 with no salvage value. The expans
Jobisdone [24]

Answer:

33,610.42  units

Explanation:

For computing the minimum annual production rate first we have to determine the annual worth by using the PMT formula which is shown below:

Given that

Present value = $258,388

Interest rate = 10%

NPER = 7 years

Future value = $0

The formula is shown below:

= PMT(RATER;NPER;-PV;FV;type)

The present values comes in a negative

After solving this, the annual worth is $53,074.32

And, the annual operating maintenance cost is $28,599

So, the revenue should be

= $53,074.32 + $28,599

= $81,673.32

Now the minimum annual production rate is

= $81,673.32 ÷ $2.43

= 33,610.42  units

4 0
3 years ago
A company reports the following: Net income $595,900 Preferred dividends $44,140 Shares of common stock outstanding 44,000 Marke
DiKsa [7]

Answer:

$12.54

Explanation:

The computation of the earning per share is shown below:

Earnings per share =  (Net Income - Preferred Dividend) ÷ (Share of common stock outstanding )

= ($595,900 - $44,140) ÷ (44,000 common stock outstanding shares )

= $551,760 ÷ 44,000  common stock outstanding shares

= $7.5

= $12.54

Hence, the earning per share is $12.54

3 0
3 years ago
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