Answer:
Is the proposed action legal?
Explanation:
The very first step in the decision tree (below) was ignored. Disregarding local laws is ignoring the question of legality.
Answer: d. total cost and variable cost
A variable cost<span> is a company expense that changes in parallel with production output. They rise as production increases.</span>
Total cost<span> refers to the total company expense incurred in producing a particular level of output. Same with the variable cost, it increases as production increases.</span>
Answer:
a. $13
b. $20,625 Unfavorable
Explanation:
a. Computation of overhead volume variance is shown below:-
Variable overhead rate = Variable overhead cost ÷ Expected standard hours
= $275,000 ÷ 25,000
= 11 direct labor hour
Fixed overhead rate = Productive capacity ÷ Expected standard hours
= $50,000 ÷ 25,000
= $2 direct labor hour
Total overheard rate = Variable overhead rate + Fixed overhead rate
= $11 + $2
= $13
b. The computation of overhead controllable variance is shown below:-
Variable overhead cost = Overhead rate × Standard hours
= $11 × 21,875
= $240,625
Fixed overhead cost = Overhead rate × Standard hours
= $2 × 21,875
= $43,750
Total overhead cost = $13 × 21,875
= $284,375
Actual result = $305,000
Variance = Actual result - overhead cost applied
= $305,000 - $284,375
= $20,625 Unfavorable
Working note:-
Standard direct labor hours = Actual units ÷ Standard hours
= 35,000 × 1.6
= $21,875
Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours
= (50,000 units × 80%) ÷ 25,000 hours
= 1.6 units per hour
Answer:
F. None of The Above
Explanation:
Real property located in the United States exchanged for foreign real property (and vice versa) does not qualify as like-kind property.
