Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
<u>To calculate the variable overhead spending variance, we need to use the following formula:</u>
<u></u>
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
Answer:
63.54% (Approx)
Explanation:
The computation of the budgeted percentage contribution margin ratio is shown below:-
For computing the contribution margin ratio firstly we need to calculate the contribution margin in dollars
Contribution margin = Sales - Variable cost
= ($480,000 - $175,000)
= $305,000
Contribution margin ratio = Contribution margin ÷ Sales
= ($305,000 ÷ $480,000)
= 63.54% (Approx)
A. True
The CPI is a measure of the cost of a "basket" of typical consumer goods, so if the cost of these goods goes down most families will spend less on average.