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3 years ago

Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:

Business

1 answer:

mel-nik [20]3 years ago

8 0

Answer:

Materials Cost Variance = 6500 favorable

Explanation:

Frogue Corporation

AP= Actual price per kilogram $2.50

AQ= Actual kilograms of material used 31,000

SP = Standard price per kilogram $2.80

SQ= Standard kilograms per completed unit 6 kilograms = 5000 units *6 kg= 30,000 kg

Material Price Variance =( AP -SP)(AQ)=

= ( $2.50- $2.80)31,000 = 9300 Favorable

It is favorable because the standard price is higher than the actual price.

Material Quantity Variance =( AQ -SQ)(AP)= (31000- 30,000) 2.8

= 1000*2.8= 2800 unfavorable

It is unfavorable because the standard quantity is lower than the actual quantity.

Materials Cost Variance =Material Price Variance+Material Quantity Variance

=9300 Favorable+2800 unfavorable=

Materials Cost Variance = 6500 favorable

When favorable and unfavorable are added the unfavorable is with negative sign so they are subtracted.

You might be interested in

Which of the following falls in the category, "place" in the marketing mix?

inna [77]

Answer: trade shows

Explanation:

In marketing mix, the place is simply referred to as the process of movement if goods and services from the producer to the prospective consumers or consumers.

The place also refers to how ones good or service is bought and the place where it is being sold. The movement could be through intermediaries like distributors, the wholesalers, retailers etc.

In the above, the place will be the trade shows.

7 0

3 years ago

Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of a

lilavasa [31]

Answer:

The options which is NOT correct is C.

Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.

Explanation:

Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.

Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.

Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.

Cheers!

4 0

2 years ago

Sales (19,500 units at $30 per unit) $585,000 Variable expenses 409,500 Contribution margin 175,500 Fixed expenses 180,000 Net o

vichka [17]

Answer:

Automated

Sales (19,500 units at $30 per unit) $585,000 $585,000

Variable expenses 409,500 351,000

Contribution margin 175,500 234,000

Fixed expenses 180,000 252,000

Net operating loss $(4,500) $( 18,000)

New Cm ratio= Contribution Margin/ Sales Revenue

= $ 234,000 $ 585,000 = 0.4

Break-even point in dollars= Fixed Costs/ 1- (variable Cost/ Sales)

= 252,000/ 1- (351,000/ 585,000)

= 252,000/ 1-0.6

= 252,000/0.4= $ 630,000

The resulting $ 630,000 is the break even point at which neither a loss nor a profit is incurred.This can be checked as follows.

Sales $ 630,000

Variable Costs ( 60 % $ 630,000) $ 378,000

Contribution Margin $ 252,000

Less Fixed Expense $ 252,000

Profit 0

Break even point in units = Fixed Costs/ Contribution Margin in units

= $ 252,000/ (30-18)

=$ 252,000/ $ 12= 21,000 units

Two Contribution format Income Statements:

Automated

Sales (26,000 units at $30 per unit) $780,000 $780,000

Variable expenses 546,000 468,000

Contribution margin 234,000 312,000

Fixed expenses 180,000 252,000

Net operating Profit $ 54,000 $ 60,000

Working:

Variable Costs per unit = $ 409500/19500= $ 21

After reduction variable costs = $ 21- $3= $ 18

4 0

3 years ago

In the russian domain, where does the commercial agricultural products concentrate

notsponge [240]

Belarus and central European Russia had very long growing season, but they had acidic podzol soils that limit farm output. Three environments influence agriculture in this region, Poor soils, cold temps, forests north of Moscow and St. Petersburg. Soils support commercial wheat, corn, sugar, beets, meat production.

5 0

3 years ago

Whether an existing business process is being improved or a completely new business process is being created, the first step in

PIT_PIT [208]

Answer:

A) define the goals. (part of define the problem)

Explanation:

The 5 stages of the Six Sigma process (DMAIC) are:

Define the problem: involves defining the problem statement ⇒ the reasons for creating or improving the process ⇒ define the goals of the process ⇒ establish a timeline ⇒ determine the scope of the project ⇒ choose the team that will be in charge of carrying out the project.
Measure or quantify the problem.
Analyze and identify the cause of the problem.
Improve by solving the root cause of the problem and verify the improvement.
Control the improvements and pursue perfection.

8 0

3 years ago