Answer:
C. $78,250 Unfavorable.
Explanation:
We know,
Material cost variance = (Standard quantity × Standard price) - (Actual Quantity × Actual price)
Given,
Standard quantity = 405,000 units
Standard price = $2.00 unit
Actual Quantity = 403,750 units
Actual price = $2.20 unit
Putting the values into the formula, we can get
Material cost variance = (Standard quantity × Standard price) - (Actual Quantity × Actual price)
Material cost variance = (405,000 × $2.00) - (403,750 × $2.20)
Material cost variance = $810,000 - $888,250
Material cost variance = -78,250
Material cost variance = 78,250 (Unfavorable)
Therefore, C is the answer.
Answer:
I) Days sales outstanding (DSO) for all customers? 48.7days
= (53*0.9)+(10*0.1) = 48.7 days
II) Net sales? $166.600
The Net sales = Gross sales - sales allowance
The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==> 0.02 * 0.1 * 170 ===> 0.34 mn
∴ The Net sales = 17 - 0.34 mn = 16.66 mn
Amount paid by discount customers? $13.600
Explanation:
I. General Credit Policy Information
Credit stamps 2/10 Net 30
Days sales outstanding (DSO) for all customers 48.7days
DSO for customers who take the discount (10%) 10days
DSO for customers who forgo the discount (90%) 53days
II. Annual Credit Sales and Costs ($ millions)
Gross sales $170.000
Net sales? $166.600
Amount paid by discount customers $13.600
Amount paid by non discounted customers $153.000
Variable operating costs (82% of gross sales) $139.40
Bad debts $0.0
Credit evaluation & collection costs (10% of gross sales) $17.00
Answer:
$3760
Explanation:
Calculation to determine the December 31 balance in Bad Debt Expense
Using this formula
Bad debt expense = Credit sales × Uncollectible percentage
Let plug in the formula
Bad debt expense= $94,000 × 4%
Bad debt expense= $94,000 × 0.04
Bad debt expense= $3760
Therefore the December 31 balance in Bad Debt Expense will be $3760
Answer:
The correct answer is $7,500
Explanation:
So, the hiring cost would be:
Hiring quater × hiring cost
= 300 × $20
= $6,000
Firing Cost would be:
Firing cost = 100 × $5
= $500
= 200 × $5
= $1,000
Therefore, the total hiring and firing cost = $6,000 + $500 + $1,000
= $7,500
Answer:
Value of Investment= Principal (1+Rate of return)^Number of periods
For the first investment the principal is 7,500, the rate of return is 11.5% and the number of periods are 5 so the value of the investment will be
7,500 (1+0.115)^5=12,925
For the second investment the principal is 5,000, the rate of return is 11.5 and the number of periods are 3 as the 5,000 is invested two years from today.
5,000*(1+0.115)^3=6,931
Total value of investments = 12,925 +6,931 = $19,856
