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3 years ago

LO 8.3When is the direct labor time variance favorable?

Business

1 answer:

ExtremeBDS [4]3 years ago

4 0

Answer:

The correct answer is letter "D": when the actual price is less than the standard price.

Explanation:

Direct labor rate variance compares the existing direct labor costs and normal direct labor costs over the same operating period. Favorable variance in the labor rate can be caused by hiring more unskilled employees, reducing the minimum wage, and incorrectly setting indirect labor costs. Favorable variance takes place when the costs of direct labor are efficient or lower compared to the standard.

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Novak Express reports the following costs and expenses in June 2017 for its delivery service. Indirect materials $7,000 Drivers’

Natasha2012 [34]

Answer and Explanation:

The computation is shown below:

a. For delivery service product cost

Indirect materials $7,000

Depreciation on delivery equipment $12,000

Dispatcher's salary $5,400

Gas and oil for delivery trucks $2,900

Drivers' salaries $16,900

Delivery equipment repairs $450

Total $44,650

The product cost includes direct material, direct labor and factory overhead cost which are used to make the product

b) Period costs:

Property taxes on office building $930

CEO's salary $12,500

Advertising $5,100

Office utilities $11,050

Repairs on office equipment $270

Total $29,850

The period cost includes majorly part of the selling and admin expense and it also recorded those expenses which are incurred according to the passage of time

7 0

2 years ago

Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel's legal counsel bel

Zepler [3.9K]

Answer:

As a disclosure only. No liability is reported

Explanation:

According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.

7 0

2 years ago

A price imposed by the government below an equilibrium price is called a ____

ehidna [41]

Answer:

Price ceiling

Explanation:

When the government imposed a price ceiling in a market of goods which means that price set by the government lies below the equilibrium price of an economy. Price ceiling results in a higher demand for the goods because people wants to buy more quantity of goods at a lower price. But supplier of the goods wants to reduce supply as it will become less profitable for the producers to sell the product at a lower price.

6 0

3 years ago

Inventory and safety stock planning ________. leads to the development of the overall demand forecast leads to the development o

NARA [144]

Answer: leads to the development of a sourcing plan

Explanation:

Inventory planning includes the safety stock planning. Safety stock planning means the additional maintenance of the stock to avoid the situation of being completely out of stock when needed. Safety stock acts as the buffer stock during the times of unexpected sudden increase in demand.

Through inventory and safety planning the goods can be accumulated based on the sale or the production of the firm. These things lead to the development of the source planning.

8 0

3 years ago

susan took out a life insurance policy on herself, paying all of the premium payments. she named her daughter, jessica, as the b

Dima020 [189]

She named her daughter, Jessica, as the beneficiary under the policy. Jessica has not given anything in consideration for the policy. Jessica is a donee beneficiary who has the right to enforce the policy once Susan dies.

A beneficiary is a character or entity which you legally designate to acquire the blessings out of your financial merchandise. For live coverage, this is the loss of life benefit your policy will pay in case you die. For retirement or investment bills, that is the balance of your belongings in the money owed.

Some may select a surviving partner as a named beneficiary while others might also call a child or a discern. One great purpose people buy life coverage is for peace of mind in relation to their own family, knowing that life insurance safety is in place in the event of your demise.

Learn more about beneficiary here brainly.com/question/1268166

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7 0

9 months ago