Answer: Beta should buy from the outside supplier
Explanation:
If Beta produces the product itself, only avoidable costs would be accounted for:
= Direct labor + Direct material + Unavoidable overhead
= 10 + 20 + ( (1 - 40%) * 50)
= 10 + 20 + 30
= $60
If however, Beta buys the product, they will buy at $58 per unit which is less than the $60 they would make it for.
Beta should buy the product because they will be able to save $2 per unit.
Answer:
$60,000 U
Explanation:
Given:
Direct materials standard (4 pounds @ $1/lb.) = $4 per unit
Direct materials flexible budget variance-unfavorable = $15,000
Actual direct materials used = 103,000 pounds
Actual units produced = 22,000 units
Now,
Direct materials efficiency variance
= (Actual material - Standard material ) × Standard price
= ( 103,000 - 22,000 × 4 ) × $4
= 15,000 × $4
= $60,000 U
Answer:
$841
Explanation:
Let the amount of deposit you need to fund each month is a
n= 30 years = 30 x 12 = 360 months
The amount of money you desire to have in 30 years (FV) = $1,980,000
i/r = 10.19%/year = 0.849%/month
Based on these given information, you can either choose to:
1) Solve the following equation:
a x 1.00849^360 + a x 1.00849 ^359 + a x 1.00849^358 + ... + a x 1.00849^1 + a = $1,980,000
2) Input given information into excel/financial calculator:
n = 360
FV = $1,980,000
i/r = 0.849
PV = 0
Find PMT (a). PMT (a) = $841
Answer:
Expected number of orders=31.6 orders per year
Explanation:
<em>The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).</em>
<em>The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.</em>
It is calculated as follows:
EOQ = (2× Co D)/Ch)^(1/2)
Co- ordering cost Ch - holding cost, D- annual demand
EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units
Number of orders = Annual Demand/EOQ
= 100,000/3,162.27= 31.62 orders
Expected number of orders=31.6 orders per year
