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Karo-lina-s [1.5K]
3 years ago
14

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 (Rate) Standard Unit Cost

Silver 0.60 oz. $ 24.00 per oz. $ 14.40

Crystals 4.00 $ 0.45 per crystal 1.80

Direct labor 1.50 hrs. $ 14.00 per hr. 21.00

During the month of January, Crystal Charm made 1,500 charms. The company used 350 ounces of silver (total cost of $7,350) and 3.050 crystals (total cost of $701.50) and paid for 2,400 actual direct labor hours (cost of $34,800.00).Required:1. Calculate Crystal Charm's direct materials price and quantity variances for silver and crystals for the month of January. Indicate whether each variance is favorable or unfavorable.2. Calculate Crystal Charm's direct labor rate and efficiency variances for the month of January. Indicate whether each is favorable or unfavorable.
Business
1 answer:
Damm [24]3 years ago
4 0

Answer:

silver

direct materials price  variance   =  $1,050 favorable

direct materials quantity  variance =  $13,200 favorable

Crystals

direct materials price  variance = $671 favorable

direct materials quantity  variance =$1,327.50 favorable

direct labor

direct materials rate variance =  $1,200 unfavorable

direct materials efficiency  variance =$2,100 favorable

Explanation:

silver

direct materials price  variance = (Aq×Ap)-(Aq×Sp)

                                                   = (350×$21,00)-(350×$24.00)

                                                   =  $1,050 favorable

direct materials quantity  variance = (Aq×Sp)-(Sq×Sp)

                                                         = (350×$24.00) -(1,500×0,60×$24.00)

                                                         = $13,200 favorable

Crystals

direct materials price  variance = (Aq×Ap)-(Aq×Sp)

                                                   = (3,050×$0,23)-(3,050×$0.45)

                                                   =  $671 favorable

direct materials quantity  variance = (Aq×Sp)-(Sq×Sp)

                                                         = (3,050×$0.45) -(1,500×4.00×$0.45)

                                                         = $1,327.50 favorable

direct labor

direct materials rate variance = (Aq×Ap)-(Aq×Sp)

                                                   = (2,400×$14,50)-(2,400×$14.00)

                                                   =  $1,200 unfavorable

direct materials efficiency  variance = (Aq×Sp)-(Sq×Sp)

                                                         = (2,400×$14.00) -(1,500×1.50×$14.00)

                                                         = $2,100 favorable

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Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on Dec
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Answer:

See the journal entry below

Explanation:

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Amount = Share × Price per share

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Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an estimated useful life of fiv
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Answer:

$960

Explanation:

For computing the accumulated depreciation, first we have to compute the depreciation expense which is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($9,600 - $0) ÷ (5 years)

= ($9,600) ÷ (5 years)  

= $1,920

This is a full year depreciation but we have to find out for June 30,2017 i.e 6 months

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3 0
3 years ago
Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month
marusya05 [52]

Answer: $1091.61

Explanation:

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Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:

= $50,000/$312,000

= 0.1603

Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:

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6 0
3 years ago
Budgeting material purchases budget. The Howell Company has prepared a sales budget of 42,000 finished units for a 3- month peri
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Answer:

The number of Gallon materials Howell company should buy is 166000 Gallons

Explanation:

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opening inventory               11000

produced                                            

closing inventory                13000

finished goods sold            42000

using the bottom up approach to get goods produced

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opening materials                  66000

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closing stock plus used in production to get available for use then subtract opening material to get purchased = 166000

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