Answer:
a. Determine the standard cost per unit for direct materials and direct labor.
standard direct labor rate = $20 x 30/60 minutes = $10 per faucet
standard direct materials rate = $1.80 x 2.5 lbs = $4.50 per faucet
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
direct materials price variance = (actual price x actual quantity) - (standard price x actual quantity) = ($1.95 x 13,000) - ($1.80 x 12,500) = $25,350 - $22,500 = $2,850 UNFAVORABLE
direct materials quantity variance = (standard price x actual quantity) -(standard price x standard quantity) = ($1.80 x 13,000) - ($1.80 x 12,500) = $23,400 - $22,500 = $900 UNFAVORABLE
total direct materials variance = direct materials price variance + direct materials quantity variance = $2,850 + $900 = $3,750 UNFAVORABLE
Answer:
d. $6,120 U
Explanation:
Calculation to determine the materials price variance for the month
Using this formula
Materials price variance = (AQ × AP) – (AQ × SP)
Let plug in the formula
Materials price variance = $138,600 – (7,200 meters × $18.40 per meter)
Materials price variance = $138,600 – $132,480
Materials price variance = $6,120 U
Therefore Materials price variance is $6,120 U
Answer:
<h2>They are bankrupt.</h2>
Explanation:
Bankrupt is a stage given by a legal court, that is legally assigned when they are able to demonstrate that they can't pay the debts. So, the court could order the relief of their debts or part.
Answer:
July 1
No Entry
Sep 1
Dr Cash $2,000
Dr Accounts Receivable $400
Dr Cost of goods sold $1,100
Cr Inventory $1,100
Cr Unearned Service Revenue $554
Cr Sales Revenue $1,846
Oct 15
Dr Cash $400
Dr Unearned Service Revenue $554
Cr Service Revenue $554
Cr Accounts Receivable $400
Explanation:
Preparation of the journal entries for Geraths in 2020.
July 1
No Entry
Sep 1
Dr Cash $2,000
Dr Accounts Receivable $400
($2400-$2000)
Dr Cost of goods sold $1,100
Cr Inventory $1,100
Cr Unearned Service Revenue $554
($600/$600+$2000*$2400)
Cr Sales Revenue $1,846
($2,000/$600+$2000*$2400)
Oct 15
Dr Cash $400
($2400-$2000)
Dr Unearned Service Revenue $554
Cr Service Revenue $554
($600/$600+$2000*$2400)
Cr Accounts Receivable $400
($2400-$2000)
Answer:
Correct option is (b)
Explanation:
Time available for work if Melanie chooses to travel by air = 7 hours
Income per hour = $40
Total income earned if chooses to travel by air = 40 × 7 = $280
Time available for work if Melanie chooses to drive = 4 hours
Total income earned if chooses to drive = 40 × 4 = $160
Price differential = 280 - 160 = $120
As a rational decision maker, Melanie will choose to fly over drive only if her price differential is below $120. She will choose to drive if price differential is above $120.
