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4 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]4 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.

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Flexible Budget for Various Levels of Production Budgeted amounts for the year: Materials 2 leather strips $7.00 Labor 1.5 hr. $

trapecia [35]

Answer:

Results are below.

Explanation:

Giving the following information:

Materials 2 leather strips $7.00

Labor 1.5 hr. $18.00

VOH 1.5 hr. $1.20

FOH $6,800

<u>First, we will determine the total cost at different production levels:</u>

3,500:

Direct material= 3,500*7= 24,500

Direct labor= 18*3,500= 63,000

VOH= 3,500*1.2= 4,200

FOH= 6,800

Total cost= $98,500

4,000:

Direct material= 4,000*7= 28,000

Direct labor= 18*4,000= 72,000

VOH= 4,000*1.2= 4,800

FOH= 6,800

Total cost= $111,600

4,500:

Direct material= 4,500*7= 31,500

Direct labor= 18*4,500= 81,000

VOH= 4,500*1.2= 5,400

FOH= 6,800

Total cost= $124,700

<u>Finally, the unitary cost:</u>

<u></u>

3,500:

Unitary cost= 98,500 / 3,500= $28.14

4,000:

Unitary cost= 111,600 / 4,000= $27.9

4,500:

Unitary cost= 124,700 / 4,500= $27.71

The production costs are essentially variable. In unitary bases, they remain constant. The fixed costs vary with the level of production on a unitary basis. <u>Therefore, the higher the units produced, the lower the fixed unitary cost.</u>

3 0

3 years ago

If a company increases its fixed costs for product b, then the contribution margin per unit will.

Evgen [1.6K]

If a company increases its fixed costs for product b, then the contribution margin per unit will remain the same.

<h3>What is fixed cost?</h3>

Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces.
They frequently occur again and again, like monthly rent or interest payments.
These expenses are often capital expenses as well.
Contrast this with variable costs, which depend on volume (and are based on the quantity produced) and are unknowable at the start of the accounting year.
Some variable costs are affected by the type of fixed costs.

<h3>What is company?</h3>

A corporation, often known as co., is a legal entity that stands for a group of people with a certain goal who are either natural, legal, or a combination of the two.
Members of the company work together for a shared cause in order to accomplish clearly stated objectives.

Learn more about fixed cost here:

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6 0

2 years ago

Outstanding stock of the Cheyenne Corporation included 37000 shares of $5 par common stock and 11500 shares of 5%, $10 par non-c

Margarita [4]

Answer:

$5,750

Explanation:

Calculation to determine How much of the 2020 dividend was distributed to preferred shareholders

Dividend distributed to preferred shareholders=11500 shares *$10 par non-cumulative preferred stock*5%

Dividend distributed to preferred shareholders=$5,750

Therefore Dividend distributed to preferred shareholders is $5,750

8 0

3 years ago

Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adj

astraxan [27]

Answer: Note receivable collected by bank in favor of the depositor and credited to the account of the depositor

Explanation:

A bank reconciliation is when the records for a cash account of an entity are been matched to the corresponding information that are provided on a bank statement.

When preparing a bank reconciliation which ends with adjusted cash balance, the note receivable collected by bank in favor of the depositor and credited to the account of the depositor must be added to the cash balance per ledger.

7 0

3 years ago

The gross domestic product (GDP) of the United States is defined as the __________all _____________ in a given period of time.

Bess [88]

Answer:

MARKET VALUE OF

FINAL GOODS AND SERVICES, PRODUCED IN THE U.S.

NOT INCLUDED

INCLUDED

NOT INCLUDED

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

a. the tire sold is not included in US GDP because it is an intermediate good. An intermediate good is a good that is used in the production of other goods. The tire is used as an input in the production of a two-door coupe

b. The car would be included as part of business spending in US GDP

C. The table would be included in GDP as part of consumption spending on durables

d. Services rendered to ones self is not recorded in GDP

7 0

3 years ago