Answer:
price variance $(22,800.00) UNFAVORABLE
Explanation:
std cost $6.00
actual cost $9.00
quantity 7,600
difference $(3.00)
price variance $(22,800.00)
We calculate the actual cost by dividing total cost by the lbs purchased:
68,400/7,600 = 9
Because the diference is negative, the variance is unfavorable.
Each pound cost more than it was planned.
Answer:
a1. 60 days
a2.Remittance = $40,500
b1- 1 % discount offered
b-2, 10days
b-3 =$40,095 ± 0.1
c-1 Implicit interest $405 ± 0.1%
c-2 Days' credit days=50 days
Explanation:
a1. 60 days
a2.0rder for 300 units of inventory at a unit price of $135
Remittance = 300($135)
Remittance = $40,500
b- 1 % discount offered
b-2, 10days
b-3 Remittance (1- 0.01) $40,500
(0.99)$40,500
Remittance =$40,095 ± 0.1%
c-1 Implicit interest $40,500- $40,095
Implicit interest $405 ± 0.1%
c-2
Days' credit days 60-10
Days' credit days=50 days
A. is the only appropriate answer.
Saves more than it spends.