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denis23 [38]
3 years ago
5

Andover Systems has a standard variable overhead rate of $5.60 per machine hour, and each unit produced has a standard time allo

wed of 2.50 hours. The company's static budget was based on 46,000 units. Actual results for the year follow.
Actual units produced: 47,000
Actual machine hours worked: 110,000
Actual variable overhead incurred: $590,000

Andover's variable-overhead efficiency variance is:
Business
2 answers:
artcher [175]3 years ago
7 0

Answer:

Andover's variable-overhead efficiency variance is $-42,000 Unfavourable

Explanation:

According to the given data we have the following:

Standard overhead rate=$ 5.60 per hour    

Actual Hours=110,000 hours    

Standard hours=47,000 units x 2.5 hours per unit    

=117,500 hours

Therefore, in order to calculate the Andover's variable-overhead efficiency variance we would have to use the following formula:

Variable Overhead efficiency variance=Standard overhead rate x (Actual hours - standard hours)

=$ 5.60 x (110,000 - 117,500)    

=$-42,000  Unfavourable

labwork [276]3 years ago
7 0

Answer:

42,000 Favorable

Explanation:

Actual units produced: 47,000 × Standard time allowed of 2.50 hours=117,500

117,500-Actual machine hours worked: 110,000= 7,500

Hence;

7,500×$5.60

=42,000 Favorable

Therefore Andover's variable-overhead efficiency variance is: 42,000 which is Favorable

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Suppose your company needs $14 million to build a new assembly line. your target debt-equity ratio is 0.84. the flotation cost for new equity is 9.5 percent, but the floatation cost for debt is only 2.5 percent. The amount required to build a new assembly line = is $ 14 million.

Equity represents the price that could be lower back to an agency's shareholders if all of the property has been liquidated and all of the business enterprise's debts were paid off. We also can consider equity as a diploma of residual possession in a company or asset after subtracting all debts related to that asset.

Equity is the possession of any asset after any liabilities associated with the asset are cleared. for example, in case you very own a vehicle well worth $25,000, but you owe $10,000 on that car, the car represents $15,000 fairness. it is the price or interest of the maximum junior magnificence of investors in assets.

In conclusion, stocks are referred to as equities because they constitute possession in organizations. They permit buyers advantage from boom but also have a chance while enterprise conditions weaken. In the subsequent time, we'll explore the variations between shares and bonds.

Debt equity ratio (debt/equity) = 0.84/1

Therefore total assets = debt + equity = 0.84 + 1 = 1.84

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Answer:

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In this case, a useful life of six years attracts a straight-line depreciation rate of 16.6 % (1/6 x 100). the double-declining method will apply a rate of  33.2 %.

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