1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miskamm [114]
3 years ago
7

Ana Carillo and Associates is a medium-sized company located near a large metropolitan area in the Midwest. The company manufact

ures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of the work is custom, many of the cabinets are a standard size. One such non-custom model is called Luxury Base Frame. Normal production is 1,000 units. Each unit has a direct labor hour standard of 5 hours. Overhead is applied to production based on standard direct labor hours. During the most recent month, only 1,120 units were produced; 4,500 direct labor hours were allowed for standard production, but only 4,000 hours were used. Standard and actual overhead costs were as follows.
Standard (1,000 units) Actual (1,120 units)
Indirect materials $15,800 $16,200
Indirect labor 56,600 67,100
(Fixed) Manufacturing supervisors
salaries 29,600 28,900
(Fixed) Manufacturing office
employees salaries 17,100 16,400
(Fixed) Engineering costs 35,500 32,900
Computer costs 13,100 13,100
Electricity 3,300 3,300
(Fixed) Manufacturing building
depreciation 10,500 10,500
(Fixed) Machinery depreciation 3,900 3,900
(Fixed) Trucks and forklift depreciation 2,000 2,000
Small tools 900 1,800
(Fixed) Insurance 700 700
(Fixed) Property taxes 400 400
Total $189,400 $197,200
Calculate the total overhead variance, controllable variance, and volume variance.
Total overhead variance -20710 T Unfavorable
Controllable variance 14710 | Unfavorable
Volume variance -6000 T Unfavorable
Business
1 answer:
Oksi-84 [34.3K]3 years ago
5 0

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

  1. 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.
  2. 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.
  3. 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.

You might be interested in
Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders ha
Novosadov [1.4K]

Answer:

Bondholders have a degree of legal protection against default risk, but it is not comprehensive.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.

Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.

5 0
3 years ago
Sigmund Jewelers creates inexpensive costume necklaces, bracelets, and rings. As a way to save costs on sending out these small
777dan777 [17]

Answer:

shipment consolidation

Explanation:

The primary aim of the consolidation of shipments is to evaluate cost control and cost control. The aggregation of shipments allows individuals or businesses to save costs thereby integrating several products from different shippers into one shipment.

Therefore in the given case, since the company wants to combine 10 to 12 different orders into one shipment so that the company could save the cost

Hence, the shipment consolidation is correct

6 0
3 years ago
Which of the following are degrees of conflict:
Rasek [7]

Answer:

Answer is Mild difference.

Explanation:

I hope it's helpful!

5 0
3 years ago
Read 2 more answers
To balance columns, a _____ is inserted at the end of the text on a page.
Radda [10]
Salutations!

To balance columns, a _____ is inserted at the end of the text on a page.

To balance columns, a continuous section break is inserted at the end of the text on a page.

Hope I helped!
3 0
3 years ago
A prepurchase inspection is different from a pre-sale inspection in there
Luba_88 [7]
These inspections are mostly connected to property purchase. The pre-sale inspection is conducted by investors and real estate agents who deal with the property. A pre-purchase inspection is conducted by the buyer who wants to purchase the property. Both are conducted as means of security.
8 0
3 years ago
Other questions:
  • Under the Investment Advisers Act of 1940, a person would have to register as an investment adviser if she gave investment advic
    9·1 answer
  • Select the correct statement about HR responsibilities of supervisors.A. Supervisors do not interview job candidates.B. In large
    14·1 answer
  • Zimway Inc is a small-scale manufacturer of linen. Couture Corp, a big apparel brand, purchases linen from Zimway in large quant
    5·1 answer
  • Type the correct answer in the box. Spell all words correctly.
    8·1 answer
  • Renting provides _________ flexibility but can lead to _________ costs in the long-term.
    5·1 answer
  • During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for
    13·1 answer
  • How do u make friends
    7·2 answers
  • In your opinion, why is training vital to the success of any organization? What is the potential impact of lack of effective tra
    5·1 answer
  • Tam attended Brown University during 2016–2020. She lived at home and was claimed by her parents as a dependent during her entir
    13·1 answer
  • The ________ is management’s minimum desired rate of return on a capital investment.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!