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Anna35 [415]
3 years ago
15

Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorn

ed with two crystals of various colors. Standard costs follow: Standard Quantity Standard Price (Rate) Standard Unit Cost Silver 0.65 oz. $ 25.00 per oz. $ 16.25 Crystals 5.00 $ 0.50 crystal 2.50 Direct labor 2.00 hrs. $ 15.00 per hr. 30.00 During the month of January, Crystal Charm made 1,500 charms. The company used 935 ounces of silver (total cost of $24,310) and 7,550 crystals (total cost of $3,624.00), and paid for 3,150 actual direct labor hours (cost of $45,675.00).
Required:

1. Calculate Crystal Charm’s direct materials variances for silver and crystals for the month of January.
2. Calculate Crystal Charm’s direct labor variances for the month of January.
Business
1 answer:
vekshin13 years ago
3 0

Answer:

1.

Direct Material Price Variance:

= (Standard Price - Actual Price) × Actual Quantity

Silver = [25 - (24,310 ÷ 935)] × 935

= (25 - 26) × 935  

= 935 unfavorable

Crystals = [0.50 - ($3,624 ÷ 7,550)] × 7,550

= (0.50 - 0.48) × 7,550 i.e

= 151 favorable

Direct Material Quantity Variance:

= (Standard Quantity - Actual Quantity ) × Standard Rate

Silver = ((1,500 × 0.65) - 935) × 25

         = 1,000 favorable

Charms = ((1,500 × 5) - 7,550) × 0.50

             = 25 unfavorable

2.

Direct labor rate variance :

= (Standard rate - Actual Rate) × Actual Hours

= [15 - ($45,675 ÷ 3,150)] × 3,150

= 1,575 Favorable

Direct labor efficiency variance:

= (Standard hours - Actual Hours ) × Standard rate

= [3,150 - (1,500 × 2)] × 15

= 2,250 unfavorable

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Answer:

Projects will be run by the functional organization and project managers expedite change control.

Explanation:

A project management office or PMO is a department within an organisation that is tasked with maintaining the standard of project management. They also make sure there is economies of repitition in project execution (ensure success of projects is replicated).

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Scenario 5 Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily produ
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Answer:

c) Annual set up cost= $9878.04

Explanation:

<em>Economic batch quantity (EBQ) is also known as economic production run, It is the optimum production run that a manufacturer should operate to minimize set up cost and carrying cost. </em>

<em>Carrying cost is the cost of keeping inventory while set up cost is cost of getting machines ready for production</em>

Annual inventory cost = = Set up cost per  run×   Annul demand / EBQ

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It is calculated as follows:

Economic batch quantity =√2× Co× D / Ch(1-D/P)

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<em>Economic batch quantity</em>

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Answer:

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The Income Statement shows a clear separate entry for the Net income which is calculated after all the deductions and additions.

Net Income is the first balance shown on the cash flow statement after which the calculations are carried out to find the flow of cash in and out of the company.

Net income is also shown in the Balance Sheet but not separately but together with retained earnings. It is added to the retained earnings and the amount is shown as a whole amount of retained earnings  or shown as a change in equity.

So best answer is C because the question asked is where would you find Net Income on?

Meaning separately. So it is separately present on Income Statement and Cash Flow Statement.

Otherwise it is present  on all three statements ( on balance sheet as part of retained earnings or equity).

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Answer:

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The market condition can be a soft market or hard market.

Soft market is one in which potential sellers are more than potential buyers. So supply exceeds demand. Buyers are able to buy affordable insurance.

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