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alina1380 [7]
3 years ago
14

Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D

specifies 6.6 direct labor-hours per unit of D80D. The standard variable overhead rate is $6.10 per direct labor-hour. During the most recent month, 1,300 units of product D80D were made and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $56,770. Required: a. What was the variable overhead rate variance for the month
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
4 0

Answer:

Manufacturing overhead rate variance= $3,741 unfavorable

Explanation:

Giving the following information:

The standard variable overhead rate is $6.10 per direct labor-hour.

During the most recent month, 1,300 units of product D80D were made and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $56,770

To calculate the variable overhead rate variance, we need to use the following formula:

Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

actual rate= 56,770/8,700= $6.53 per hour

Manufacturing overhead rate variance= (6.1 - 6.53)*8,700

Manufacturing overhead rate variance= $3,741 unfavorable

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Economists know it is best to track inflation because a. It distorts prices b. It distorts statistics about overall economic per
UkoKoshka [18]

Answer:

c. it makes prices rise

Explanation:

Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation.

Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power.

Low inflation indicates slow economic growth, low employment, and a reduction in prices.

5 0
3 years ago
Krazy Kayaks sells its entryminuslevel kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per
Daniel [21]

Answer:

Net operating income= 565,000

Explanation:

Giving the following information:

Krazy Kayaks sells its entry-level kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per month for volumes up to​ 1,100 kayaks. Above​ 1,100 kayaks, monthly fixed costs are​ $60,000.

Sales= 2,500*750= 1,875,000

COGS= (500*2,500)= (1,250,000)

Gross profit= 625,000

Fixed costs= (60,000)

Net operating income= 565,000

7 0
2 years ago
Management can make any form of distribution to the firm’s shareholders using the company’s free cash flow (FCF). The underlying
vovikov84 [41]

Answer:

A good use of free cash flow is to Invest in nonoperating assets

Explanation:

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.

If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.

A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)

3 0
3 years ago
Good Firm is highly profitable and will grow rapidly in the future. Bad Firm faces the same risks but barely makes a profit and
RideAnS [48]

Answer: B.both stocks are equally good investments

Explanation:

The options are;

A.it is better to buy shares in Bad Firm

B.both stocks are equally good investments

C.it is better to buy shares in Good Firm

D.both stock prices react equally to the same information

From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.

3 0
3 years ago
When changing from the average cost method to FIFO, the company:
Lesechka [4]

Answer: B. Revises comparative financial statements.

Explanation:

When switching from a median Cost method to FIFO method. this sort of switch can always yield a major impact on all financial statements. Any organization which wishes to change would settle on the requirement to scrutinize whether it has to restate its financial data for previous years to reflect the new method or only apply the new method to the present and future years.

7 0
3 years ago
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