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Sonbull [250]
3 years ago
10

Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $70

0,000, machine hours to be 200,000, and direct labor hours to be 35,000. During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?a.$1,700 overappliedb.$600 overappliedc.$1,000 underappliedd.$1200 underappliede.$800 overapplied
Business
1 answer:
yan [13]3 years ago
8 0

Answer:

correct option is a. $1,700 over head applied

Explanation:

given data

overhead = $700,000

machine hours = 200,000

direct labor hours = 35,000

Feb, direct labor hours = 5,000

Feb, machine hours = 10,000

Feb, actual overhead = $98,300

solution

we know overhead rate that is

overhead rate = \frac{Budget overhead}{allocation base}

overhead rate = \frac{700000}{35000}

overhead rate = $20 per hours

and in Feb for 5000 direct labor hour

overhead =  5000 × $20  = $100,000

so

over head applied = $100,000 - $98300

over head applied = $1700

so correct option is a. $1,700 over head applied

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Answer:

A. ​$50 in required reserves.

Explanation:

Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.

As per given data

Deposits = $500

Reserves = $200

Required Reserve ratio = 10 percent

Required reserve = Reserve required / Total Deposit

0.1 = Reserve required / $500

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Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150

6 0
3 years ago
Two major virtues of the market system are that it:
podryga [215]

The correct answer is allocates resources efficiently and allows economic freedom.

The market system of economics is one where economic decisions and the pricing of goods and services are guided solely by supply and demand and there is limited to no government interaction in the economy. Because of this, two major virtues of the market system are that it allocates resources efficiently and allows economic freedom.

4 0
3 years ago
Consider the markets for head sets, smart phones, cellular telephone service, and cell phone applications. Assume the market for
Alex73 [517]

Answer:

a) Head sets - perfect competition

b) Smart phones - monopolistic competition

c) Cellular telephone service - oligopoly

d) Cell phone applications - monopolistic competition

Explanation:

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- Oligopoly is characterised by few firms controlling the market and keeping each other from dominating the market. This is they type of competition for cellular telephone service.

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6 0
3 years ago
The Sun Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this ite
Mashutka [201]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company estimates it will sell 75,000 units of this item in 2008. The beginning finished goods inventory contains 20,000 units. The target for each year's ending inventory is 10,000 units.

1) <u>To calculate the budgeted units of production, we need to sum the sales of the period to the desired ending inventory and subtract the beginning inventory.</u>

Production budget= 75,000 + 10,000 - 20,000= 65,000 units

2)

Each unit requires five feet of plastic tubing. The tubing inventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three month's production.

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Purchases= 65,000*5 + 18,750*5 - 70,000= 348,750 feet

7 0
3 years ago
The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact
lutik1710 [3]

Answer:

C. There are more substitutes for Cheerios than for cereals as a whole

Explanation:

Since in the question it is given that the demand for  Cheerios cereal is more price-elastic than the demand for cereals as a whole as because there are more substitutes for Cheerios as compare to cereals because in the case of substitute goods, there is a positive relationship between the price of good B and the demand of good A. It means if the price of good B decline. then the demand of good A is decreases and vice versa

6 0
3 years ago
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