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vlabodo [156]
3 years ago
11

Higgs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is $0.75 per unit of output. If the com

pany's performance report for last month shows a $600 favorable spending variance for indirect materials and if 8,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:
a.$6,000


b.$5,400


c.$6,600


d.$5,200
Business
1 answer:
vivado [14]3 years ago
6 0

Answer: b. $5,400

Explanation:

When there is a FAVOURABLE VARIANCE it means that the ACTUAL amount spent on a project is less than the amount that the company BUDGETED for it.

There is a favourable Variance in the scenario described above meaning that the budgeted costs for Indirect Materials was higher than the actual costs.

That means that the actual costs can simply be calculated by the following formula,

Actual Cost = Budgeted Amount - Positive Variance.

Budgeted Amount = 0.75 * 8,000 units

Budgeted Amount = $6,000

Actual Cost incurred is therefore,

= 6,000 - 600

= $5,400

Hence the correct answer is Option B

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When is VAT added to a product’s price?
Sophie [7]

VAT added to the products price at the stage of sale.

Answer: Option B

<u>Explanation:</u>

VAT stands for value added tax. VAT system is like a GST. The VAT has to be paid by the consumer or a business concern must pay the cost of goods and services and has to be subtracted material cost of previous year if any.

At the exact and each time value is added when a sale is made. Each and every seller in the production chain as to be charges VAT tax to the buyer, which it's remitted to the government.

3 0
3 years ago
Beta Company expects to incur overhead costs of $20,000 per month and direct production costs of $125 per unit. The estimated pr
mina [271]

Answer:

$415

Explanation:

For computing the sales per unit first we have to determine the total sales value which is shown below:

Direct Production costs (1,000 units × $125)   $125,000

Fixed Overhead costs for the year = $20,000 × 12 months = $240,000

Total Costs for the year              $365,000

Gross Profit desired (1,000 units × $50)   $50,000

Total Sales Value desired = Costs + Profit $415,000

Now

Sales price per unit is

= $415,000 ÷ 1,000 units

= $415

This is the answer but the same is not provided

4 0
3 years ago
Why does manufacturing's multiplier effect matter to an economy?
irga5000 [103]

Answer:

It has a greater impact than service industries.

Explanation:

6 0
2 years ago
Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.5% in Germany. I
Marianna [84]

Answer: 1.356345

Explanation:

Based on the scenario and information provided in the question, the 90-day forward rate will be calculated as:

= Spot Rate × (1 + Germany Interest Rate) / (1 + United States Interest Rate)

= 1.35 × (1 + 6.5%) / (1 + 6%)

= 1.35 × (1 + 0.065) / (1 + 0.06)

= 1.35 × 1.065/1.06

= 1.35 × 1.0047

= 1.356345

3 0
3 years ago
Economic models
Fiesta28 [93]

Answer:

D.

Explanation:

A economic model can be used to explain or predict economic phenomena, because every model has to have key variables that command the economic decisions and operations.

An economic model is define to get a specific goal, so when some problem comes, you can study every decision based on the model applied, that 'simplifies' solutions, or even better, you must be able to predict when economic problems will arrive.

7 0
3 years ago
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