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jeka57 [31]
3 years ago
11

Under variable costing income statements, product cost would include Direct materials only Direct materials, direct labor and fi

xed manufacturing overhead Direct materials and direct labor Direct materials, direct labor, fixed manufacturing overhead and fixed selling and administrative expenses
Business
1 answer:
pantera1 [17]3 years ago
4 0

Answer:

Direct materials and direct labor.

Explanation:

A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.

The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.

Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.

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Mauritiana uses standard costing for her shawls. She expects that a typical shawl should take 4 hours to​ produce, and the stand
PSYCHO15rus [73]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

She expects that a typical shawl should take 4 hours to​ produce, and the standard wage rate is $ 10.00 per hour. An average shawl uses 12 skeins of wool. Marina shops around for good​ deals, and expects to pay $ 3.30 per skein.

For ​ April, Mauriona​'s workers produced 200 shawls using 784 hours and 3,360 skeins of wool. Mauriona bought wool for $ 10,420 ​(and used the entire​ quantity), and incurred labor costs of $ 8,100.

1)

Direct material price variance= (standard price - actual price)*actual quantity

Actual price= 3.10

Direct material price variance= (3.3 - 3.10)*3,360= $672 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= [(12*200) - 3,360]*3.3= $3,168 unfavorable

Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= [(4*200) - 784]*10= $160 favorable

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance= (10 - 10.33)*784= 258.72 unfavorable

2)

Work in process                                        7,924                      

Direct material quantity variance            3,168

Direct material price variance                                        672

Material inventory                                                           10,420          

Work in process              8,000

Direct labor price variance       260

Direct labor efficiency variance              160

Wages payable                                      8,100

7 0
3 years ago
You've found an Internet article that supports your view of a research subject. The author seems to have excellent credentials,
Nat2105 [25]
I believe the answer u are looking for is c......You can use the reference to support your claim. however be careful that you still use updated information as well
8 0
3 years ago
Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to all
hammer [34]

Answer:

a. predetermined overhead rate for each activity

initial concept formation  = $3,310 per Project Change

design  = $3 per Square feet

construction oversight  = $1,130 per Month

b. Classification

unit-level activities :

design

batch level activities :

initial concept formation

Product level activities :

design<em> </em>

Facility level activities :

initial concept formation

construction oversight

Explanation:

This question requires application of Activity Based Costing (ABC) method of allocating overheads.

For each overhead a rate is determined as follows :

<em>initial concept formation </em>

Predetermined overhead rate = Overhead Cost / Number of Project Changes

                                                  = $52,960/ 16

                                                  = $3,310 per Project Change

<em>design </em>

Predetermined overhead rate = Overhead Cost / Square feet

                                                  = $420,000/ 140,000

                                                  = $3 per Square feet

<em>construction oversight </em>

Predetermined overhead rate = Overhead Cost / Number of Months

                                                  = $118,650/ 105

                                                  = $1,130 per Month

<em>Classification</em>

The way the activity is to be absorbed in costing determine its classification

5 0
2 years ago
The ultimate goal of JIT is to have:__________.
sineoko [7]

Answer:

The correct answer is (A)

Explanation:

JIT stands for just in time; it is a process which is used to handle and coordinate the inventory management.  The main goal is to handle the inventory efficiently to improve the flow of the system in a timely manner and to eliminate discrepancies in the inventory management system. Overall, it helps to eliminate the disruption and to make the system flexible and smooth.

8 0
3 years ago
Suppose that a 5-year Treasury bond pays an annual rate of return of 2.9%, and a 5-year bond of the fictional company Risky Inve
solniwko [45]

Answer:

The risk premium is 4.4%

Explanation:

The risk premium on any given investment is the difference between the risky investment and the risk free investment and in this case we know treasury bonds are risk free and offer a certain return of coupons because they come from governments rather than the fictional ones like the one from risky investment inc so to find the risk premium we say :

Risk Premium = Risky investment rate - Risk free investment Rate

                       = 7.3% - 2.9%

                      = 4.4%

3 0
3 years ago
Read 2 more answers
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