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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.

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United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____
Hunter-Best [27]

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

(2 ÷ 100) × $60,000,000

= 0.02 × $60,000,000

= $1,200,000

To calculate the average assets, sales is divided by the turnover.

we have, ($60,000,000 ÷ 3.0)

= $20,000,000.

To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

3 0
3 years ago
- Name the six business management perspectives that go beyond planning, controlling, and decision making?
wel

Answer 4:

Following are the six business management perspective:

  1. Ethical Stance
  2. Strategic aspects of the decision
  3. Risk Management
  4. CSR Aspect
  5. Process Management Aspects
  6. Leaders Perspective

Answer 5:

IMA stands for Institute for Management Accountants.

The IMA Statement of Ethical Professional Practice has listed following four standards for the professionals who are member of IMA to comply with:

  1. Competence: The member must be competent in his role in accordance to his experience, skills, knowledge, complying laws & regulation and always acting ethically.
  2. Confidentiality: Must not breach the confidentiality implied duty on him except in situations when disclosure of information is mandatory by law.
  3. Integrity: Must be straight forward and there must be no self interest in his dealings with the company and must considerably reduced.
  4. Credibility: Communicate the results with unbiased decision making.

Answer 6:

Because freedom does not means that our self interest is everything. We owe duty of care to people who rely on our acts. An accountant, auditor or internal auditor must act ethically or universally that benefits everyone without breaking the laws and ethical duties imposed by the professional bodies. If we go back to Enron case, we see that the External auditor was not acting in the public interest and as a result Enron which was the world's first $100 billion dollars company collapsed. The collapse of Enron bankrupt many pension companies which further affected the lives of the ordinary person in the USA. Furthermore, due to collapse of Enron, a lot of people withdraw the amount invested in Stock exchange. Dozens of companies and millions of people suffered from this unethical behaviour of professionals.

Answer 7:

Corporate Social Responsibility means that the company is just like an human being and its operations must not harm the environment, so this the least duty which the stakeholders expect from them. Being a good social beings, the companies must try to stable the environment situation in its surrounding and wherever its stakeholders live. For Example, The refinery companies have stopped poluting the oceans with their oil spills, now they have opted to newest technology that will eliminate the harmful effects of their oil spills and bring stability in the environment.

Another example includes the lower usage of natural resources. In UK it is the companies responsibility to reduce its natural resources usage which will lower the pollution. This additional care has a cost and may lead to lower competitiveness of the products so there must be a law globally that enforces to act socially responsible.

7 0
2 years ago
What does attention to detail say about you as a leader?
ASHA 777 [7]

Answer:

that you are a good leader and can lead people to victory

Explanation:

5 0
3 years ago
Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The
eimsori [14]

Questions

Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $22,400 $19,600 $42,000 Sales value at split-off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25,300 $36,900 Sales value after further processing $44,800 $53,200 $98,000 Required: (a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

Answer:

Net advantage from further processing  $1,200<u> </u>

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  

Also note that all the joint costs incurred up to the split-off point are irrelevant to the decision to process further any of the .

Net monetary advantage of product X

                                                                                              $

Sales revenue after the split-off point                          44,800

Sales revenue at the split-off point                             <u>  (32,000)</u>

Additional sales revenue                                                  12,800

Further processing cost                                                    <u>(11,600)</u>

Net advantage from further processing                         <u>     1,200 </u>

Net advantage from further processing  $1,200<u> </u>

4 0
3 years ago
The difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the
Zarrin [17]

Answer:

Deadweight loss

Explanation:

Deadweight loss can be defined as the lost economic surplus when a market is not allowed to adjust to its competitive equilibrium. The deadweight loss includes losses in both supplier and consumer surplus.

A deadweight loss happens when the equilibrium price for a good or a service cannot achieved usually due to external factors, e.g. price ceilings like rent control, specific taxes, etc.  

4 0
3 years ago
Read 2 more answers
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