Answer:
total cost to be accounted = $294,000
Explanation:
Work in Process
Beginning value of WIP = $24,000
Ending value of WIP = $13,000
Cost added to production = $283,000
Cost to be accounted for = Beginning value of WIP + Cost added to production - Ending value of WIP
Cost to be accounted for = $24,000 + $283,000 - $13,000 = $294,000
Answer:
-$30,250 favorable
Explanation:
labor efficiency variance = (standard quantity - actual quantity) x standard labor cost
- actual quantity = 7,700 hours
- standard quantity = 9.9 hours x 1,000 units = 9,900
- standard labor cost = $13.70
labor efficiency variance = (7,700 - 9,900) x $13.70 = -$30,250 favorable variance
the variance is favorable, because less hours were actually used than forecasted
Answer:
Optimal batch size to produce= 5.56 slices
Explanation:
Selling rate of sandwich = 50 / hour
No of slices used per hour = 50* 2 =100 ( each sandwich use 2 slices)
No of loafs which gets baked in an hour = 7
No of sandwich slices which get produuced in an hour = 7*20 =140
No of sandwich which can be produce = 10/2 =70
So every hour no of slices to be hold = 40
No fo loaf to be hold = 40/20 =2
Cost of holding = 0.8* 1 =0.8
Cost of running a new batch = $3*2 = $6
Selling each sandwich = $12.95
Saving = $12.95 - $6 =$6.95
Optimal batch size = saving * ( Holding cost) = 6.95 *0.8 = 5.56 slices
Answer:
A. $59.78 per MH
Explanation:
The computation of activity rate for the Order Size activity cost pool under activity-based costing is shown below:-
Activity rate for the Order Size activity cost pool = Activity pool cost ÷ Total expected activity
= $579,866 ÷ 9,700
= $59.78 per MH
Therefore for computing the activity rate for the Order Size activity cost we simply applied the above formula and ignore all other value as the other values are not relevant.
