Answer:
total budgeted costs = $189,400
budgeted production = 1,000 units
standard rate = $189,400 / 1,000 = $189.40 per unit
total actual costs = $197,200
actual production = 1,120 units
actual rate = $197,200 / 1,120 = $176.07 per unit
- total fixed overhead variance = actual overhead costs - budgeted overhead costs = $197,200 - $189,400 = $7,800 unfavorable. The actual overhead expense was higher than the budgeted.
- controllable variance = (actual rate - standard rate) x actual units = ($176.07 - $189.40) x 1,120 units = -$14,929.60 favorable. The actual overhead rate was lower than the standard rate, that is why the variance is positive.
- volume variance = (standard activity - actual activity) x standard rate = (1,000 - 1,120) x $189.40 = -1,120 x $189.40 = -$212,128 favorable. More units where produced than budgeted, that is why the variance is positive.
Answer:
0.90
Explanation:
The propensity to consume refers to how the level of consumption changes with an increase in income. As with other concepts of this nature, it is necessary to analyse the propensity to consume in terms of Marginal Propensity to Consume(MPC).
MPC=change in consumption/change in income
In this question
change in consumption=$9,000
change in income=$30,000-$20,000=$10,000
MPC=$9,000/$10,000=0.90
Answer:
$0.91
Explanation:
Calculation to determine What will the earnings per share be if the debt is issued and the economy is in a recession
Using this formula
Earnings per share =Economy in a recession/Shares of stock outstanding
Let plug in the formula
Earnings per share =$16,000/17,500
Earnings per share =$0.91
Therefore What will the earnings per share be if the debt is issued and the economy is in a recession is $0.91
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