Answer:
$6,400 U
Explanation:
With regards to the above information, we would calculate first the earned value.
Earned value
= Actual activity × Budgeted value
= $27,500 × 6
= $165,000
Now, we would compute the cost variance.
Cost variance
= Earned value - Actual blue
= $165,000 - $171,400
= $6,400 U
Here, we have an unfavourable variance because the company incurred more of the cost than it should be .
Answer:
D is the appropriate conclusion.
D) Heidi should drop the sweet clover term from her model.
Answer:
It is cheaper to make the part. In three years the company will save $12,000.
Explanation:
Giving the following information:
Units= 40,000
Variable costs= $1.60 per unit
Fixed costs= $40,000 per year
Gilberto is considering buying the part from a supplier for a quoted price of $2.70 per unit guaranteed for three years.
We need to calculate the total cost of making and buying the part.
Make in-house:
Total cost= 1.6*40,000 + 40,000= $104,000
Buy:
Total cost= 40,000*2.7= $108,000
It is cheaper to make the part. In three years the company will save $12,000.
Answer:
$5.74
Explanation:
Q* = 2DS / H[1-(d/p)]
Q² = 2DS / H[1-(d/p)]
S = (Q²)(H)[1 - (d/p) / 2D
Setup cost S = (200^2)*(10)*(1 - (100/800)) / 2*30,500
Setup cost S = 40000*10*0.875 / 61000
Setup cost S = 350000 / 61000
Setup cost S = 5.737704918032787
Setup cost S = $5.74
