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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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ad-work [718]

Answer: C.

Explanation: When you pay any bill, you don't borrow money, you give your own money to the company or whoever you are giving the money to.

8 0
2 years ago
Russell Preston delivers parts for several local auto parts stores. He charges clients $1.30 per mile driven. Russell has determ
Lapatulllka [165]

Answer:

A. Determine how many miles Russell needs to drive to break even?

break even formula = total fixed costs / contribution margin

  • total fixed costs = $1,220
  • contribution margin = $1.30 - $0.29 = $1.01

break even formula = $1,220 / $1.01 = 1,207.9 ≈ 1,208 miles

B. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

if he drove 2,500 he made a profit because it is more than the break even point.

C. Determine how many miles Russell must drive to earn $2,135.00 in profit.

($1,220 + $2,135) / $1.01 = 3,321.7 ≈ 3,322 miles

D. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month.

total revenue                         $3,250

<u>- variable costs                       ($725)</u>

contribution margin              $2,525

<u>- fixed costs                         ($1,220)</u>

net income                            $1,305

E. Use the above information to calculate Russell’s degree of operating leverage.

Degree of operating leverage = contribution margin / operating income = $2,525 / $3,250 = 0.7769 or 77.69%

8 0
3 years ago
costco, a popular retail chain in north america, recently opened three new stores in sacramento to cater to its customers. this
just olya [345]

The fact that Costco opened three new stores to serve its customers exemplifies the growth strategy.

<h3 /><h3>What is the growth strategy?</h3>

It corresponds to an organizational plan that defines courses of action with the objective of reaching new markets and consumers. Some growth strategies are related to increasing market share, increasing investments and including benefits in the goods offered.

Therefore, a growth strategy when well implemented helps a company to create more value for the consumer, attracting and retaining them, in addition to becoming more competitive and positioned in the market.

Find out more about growth strategy on:

brainly.com/question/14546783

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6 0
1 year ago
Item3 1.42 points PrintCheck my work Check My Work button is not enabled 3 Item 3 Item 3 1.42 points Lakeview Company completed
larisa [96]

Answer:

Lakeview Company

Journal entries

A. Payroll

Debit Wages with $94,500

Credit Cash with $94,500

(Being December wages paid employees in Cash)

B. Rent collection Journal Dec 10.

Debit cash with $6,750

Credit Deferred Revenue with $6,750

(Being 30 days rent collected in advance. Rent expires Jan 10)

C. Rent Collected (adjusted Journal)

Debit Deferred Revenue Account with $4,500

Credit Rent Account with $4,500

(Being rent income applicable to this years records)

3.. Liability recognition

Debit Employee income taxes with $12,000

Debit FICA employee deductions with $9,000

Debit employees contribution to cancer research with $4,500

Credit Employee income taxes payable account with $12,000

Debit FICA employee deductions payable account with $9,000

Debit employees contribution to cancer research payables account with $4,500

(Being deduction from employee December wages)

Debit FICA employer deductions with $9,000

Debit State & Fed unemployment taxes (employer) account with $1,050

Credit FICA employer deductions payable account with $9,000

Credit State & Fed unemployment taxes (employer) payable account with $1,050

(Being employer contribution and taxes incidental to December Wage payment)

In the Balance sheet.

Current liabilities.

Deferred Revenue = $2,250

Employee income taxes payable account = $12,000

FICA employee deductions payable account = $9,000

employees contribution to cancer research payables account = $4,500

FICA employer deductions payable account = $9,000

State & Fed unemployment taxes (employer) payable account = $1,050

Total current liability = $37,800

8 0
3 years ago
Which of the following is a difference between flow shops and job shops? a. Unlike flow shops, job shops require little or no se
andrew11 [14]

The difference between flow shops and job shops is that unlike flow shops, job shops require frequent machine changeovers and delays.

<h3>What is a job shop?</h3>

The shops, which specialize and are involved in the manufacturing and production processes, which are typically medium-sized enterprise, and conduct different types of job after the completion of one, are job shops.  

Hence, option C holds true regarding a job shop.

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5 0
2 years ago
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