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Natalka [10]
3 years ago
13

Gordin Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-d

ay. During May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:

Fixed element per month Variable element per tenant-day
Revenue - $ 27.60
Wages and salaries $ 2,000 $ 5.20
Food and supplies 800 10.20
Facility expenses 8,500 3.70
Administrative expenses 6,000 0.10
Total expenses $ 17,300 $ 19.20
Actual results for May:

Revenue $ 86,322
Wages and salaries $ 17,984
Food and supplies $ 32,444
Facility expenses $ 19,554
Administrative expenses $ 6,162
The activity variance for administrative expenses in May would be closest to:

Multiple Choice

$2 F

$2 U

$138 U

$138 F

2. Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January.

Fixed Element per Month Variable Element per Container Refurbished Actual Total for January
Revenue $ 4,100 $ 158,600
Employee salaries and wages $ 50,600 $ 1,100 $ 92,700
Refurbishing materials $ 700 $ 27,000
Other expenses $ 41,200 $ 40,800
When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.

The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for January would have been closest to:

Multiple Choice

$5,400 U

$2,800 U

$5,400 F

$2,800 F

3. Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Fixed element per month Variable element per unit
Revenue - $ 32.60
Direct labor $ 0 $ 3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $ 61,700 $ 18.20
Actual results for May:

Revenue $ 200,564
Direct labor $ 22,786
Direct materials $ 73,824
Manufacturing overhead $ 43,922
Selling and administrative expenses $ 31,896
The revenue variance for May would be closest to:

Multiple Choice

$6,920 F

$6,920 U

$8,224 U

$8,224 F

4. Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690.

The spending variance for plane operating costs in August would be closest to:

Multiple Choice

$2,294 U

$10,253 U

$2,294 F

$10,253 F
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
8 0

Answer:

1. b) $2 U

2. d) $2800 F

3. a) $6920 F

4. d) $10253 F

Explanation:

1) The activity variance for administrative expenses in May would be closest to: (3000-3020)*.10 = 2 U

Therefore, answer is b) $2 U

2) Revenue variance = (38*4100)-158600 = 2800 F

Hence, answer is d) $2800 F

3) Revenue variance = (5940*32.60)-200564 = 6920 F

So answer is a) $6920 F

4) Spending variance for plane operating costs = (39590+2649*85+4*297)-255690 = 10253 F

So answer is d) $10253 F

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The supply chain contract that involves full refund for returned items as long as the quantity is below an agreed-upon threshold
Fudgin [204]

Answer:

B. False

Explanation:

This is false, as sales rebate is a different concept. The named contract is a <em>quantity  flexibility contract</em>. Rebate is the discount which a buyer receives when buying a larger amount of goods. Rebate is determined by the contribution margin, as it has to be maintained to remain feasible for the seller.

7 0
3 years ago
IBM creates and sells additional stock to the investment banker Morgan Stanley. Morgan Stanley then resells the issue to the U.S
ivanzaharov [21]

Answer: Asset Transformer

Explanation: The above is an example of asset transformation by Morgan Stanley. The transaction itself is an example of a primary market transaction.

An asset transformers (Morgan Stanley in this case) are involved in the conversion of risky assets (IBM stocks, in this case) into safer assets by creating and selling assets with risk characteristics that investors are more comfortable with (E.g. Mutual funds). The funds acquired by selling these assets are used to purchase other assets that may have for more risk and possibility for higher returns.

5 0
3 years ago
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company
azamat

Answer:

Month 1 = 5.3 Days

Month 2 = 4.9 Days

Month 3 = 3.9 days

Month 4 = 4.5 Days

Explanation:

The computation of throughput time for each month is shown below:-

Throughput time = Process time + Inspection time + Move time + Queue time

Month 1 = 0.7 Days + 0.6 Days + 0.6 Days + 3.4 Days

= 5.3 Days

Month 2 = 0.7 Days + 0.6 Days + 0.5 Days + 3.1 Days

= 4.9 Days

Month 3 = 0.7 Days + 0.4 Days + 0.4 Days + 2.4 Days

= 3.9 days

Month 4 = 0.4 Days + 0.6 Days + 0.8 Days + 1.7 Days

= 4.5 Days

Therefore for computing the throughput time for each month we simply applied the above formula.

4 0
3 years ago
Jacob is the chief financial officer for RinseAll Detergent products. His company is interested in investing in a facility in In
Aleks04 [339]

Answer:

The correct answer is Hedging.

Explanation:

Hedging is the strategy used to reduce risks in investment. When hedging is used, it is when the investor, in addition to making his initial investment, also invests in a related product in a manner contrary to the one he will invest.

Hedging is widely used in investments because it is an accurate way to be able to secure its economy, this method is widely used today, and it also offers the advantage of making your coverage differently, whether in currencies, stocks, among others.

<em>I hope this information can help you.</em>

6 0
3 years ago
A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to me
suter [353]

Answer:

desired cycle time: 60 seconds

Explanation:

The desired cycle time should match production with demand

If there is a demand per day of 480 units then the cycle time should be:

8 hours x 60 minute x 60 seconds = 28,800 second

we divide this by the 480 units of demand:

28,800 second/ 480 units =  60‬

The company needs to complete a unit in a 60 second time period.

8 0
3 years ago
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