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Inessa [10]
3 years ago
11

GKM, Inc. is a manufacturer of furniture. At the beginning of​ February, it was estimated that each unit of Let the Light In wou

ld require 4 hours of direct​ labor, and the related direct labor cost was expected to equal​ $36 per unit of product. During​ February, the company logged​ 3,750 hours of direct labor hours to produce ​1,000 units of Let the Light In. Direct laborers were paid at a rate of​ $9.15 per hour.
1. Which of the following statements is correct with regard to Let the Light​ In’s February ​production?
A.The direct labor hours expected for the actual output during the month were more than the actual direct labor hours logged during the month.
B. It is likely that the direct labor variances are not related since both the rate variance and the efficiency variance are unfavorable.
C. If the company used higher paid and more efficient workers than expected for production during the​ period, it was not​ "worth​it."
D. The direct labor standard rate was greater than the direct labor actual rate during the month.
E. The total actual direct labor cost was higher than the total expected direct labor cost.
Business
1 answer:
hodyreva [135]3 years ago
7 0

Answer:

A. The direct labor hours expected for the actual output during the month were more than actual direct labor hours logged during the month

Explanation:

The direct labor hours estimated we 4 labor hours per unit. To calculate actual labor hours worked we multiply total units by 4 labor hours

1000 units * 4labor hour / unit = 4,000 labor hours

but actually labor hours we 3,750 hours

3750 hours / 4 hour /unit = 937.5 units

The labor is efficient as it consumed less hours and produce more units than expected.

The labor rate paid per hour was higher than expected

4 labor hours per unit * $9.15 / labor hour = $36.6 per unit

In total the cost of labor was lower than expected

$9.15 per hour * 3,750 hours = $34,312

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All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one
Romashka [77]

Answer:

A.

The output will rise by more than it did when the previous unit was added.

Explanation:

7 0
2 years ago
Using these data from the comparative balance sheet of Blossom Company, perform vertical analysis. (Round percentages to 1 decim
vovikov84 [41]

Answer:

<u>For 2017</u>

Account receivable % = Account Receivable/Total Assets x 100

Account receivable % = $ 497,000/$ 3,101,000 * 100

Account receivable % = 0.16027088 * 100

Account receivable % = 16.0%

Inventory % = Inventory/Total Assets *100

Inventory % = $ 735,000/$ 3,101,000 * 100

Inventory % = 0.2370203 * 100

Inventory % = 23.7 %

Total Assets  = $3,101,000 = 100%

<u>For 2016</u>

Account receivable % = Account Receivable/Total Assets * 100

Account receivable % = $ 435,000/$ 2,758,000 * 100

Account receivable % = 0.15772298 * 100

Account receivable % = 15.8%

Inventory % = Inventory/Total Assets * 100

Inventory % = $555,000/$ 2,758,000 * 100

Inventory % = 0.20123277 * 100

Inventory % = 20.1%

Total Assets  = $2,758,000 = 100 %

7 0
3 years ago
Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa and Germany. With relevant e
Tema [17]

Answer:

Explanation:

It should be understood that Kasapreko company limited is a Ghanian company that specialises in the production of herbal beverage products.

And the primary aim or goal of the company is to be able to have branches in every country of the world. But before this could be achieved, the company must be able to meet the demands of its country of production, and be able to attain or collect the necessary documents that will allow it to have branches outside the country it was founded. It must also be able to acquire the necessary licenses to operate in its desired countries.

Presently, the company has branches in countries like Nigeria and South Africa.

7 0
3 years ago
Ace Electric's income statement reports Sales of $100,000; Cost of goods sold of $46,000, Operating expenses of $34,000, Interes
sukhopar [10]

Answer:

Total Sales

Explanation:

Vertical analysis is a financial statement analysis in which all the line items of any financial statements (income statement or balance sheet) are enlisted as a percentage of one main item. For income statement, the main item is total sales as the item starts with the total sales while for balance sheet, the main item is total assets as the summation of current and non-current assets conclude the total asset. Therefore, we need to give 100% for total sales if we analyse the ratio vertically.

3 0
3 years ago
You've borrowed $20,000 on margin to buy shares in ixnay, which is now selling at $40 per share. your account starts at the init
zzz [600]

Answer:

a. will you receive a margin call?

No you wouldn't. You borrowed $20,000 on the margin which means that you invested $20,000 of your own money. You purchased 1,000 stocks (= $40,000 / $40) of ixnay at $40, and now the stock price is $35. This means that you lost $5,000, and you percentage on the margin = $15,000 / $35,000 = 43%. Since the maintenance margin is 35%, you are still in.

b. how low can the price of ixnay shares fall before you receive a margin call?

we can use the following formula = (1,000price - $20,000)/1,000price = 35%

350price = 1,000price - $20,000

$20,000 = 1,000price - 350price = 650price

price = $20,000/650 = $30.769 ≈ $30.77 or lower

3 0
3 years ago
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