1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
based on rankings by forbes in 2003, the second-largest source country of multinational enterprises was .
Harlamova29_29 [7]

based on rankings by forbes in 2003, the second-largest source country of multinational enterprises was Japan.

What is multinational enterprises?

A corporate entity that owns and manages the production of goods or services in at least one nation other than its own is referred to as a multinational firm. Coca-Cola, Unilever, Pepsi, Starbucks, McDonald's, BMW, Suzuki, Samsung, etc. are a few instances of international corporations.

Therefore,

based on rankings by forbes in 2003, the second-largest source country of multinational enterprises was Japan.

To learn more about multinational enterprise from the given link:

brainly.com/question/494475

6 0
1 year ago
Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price chang
Vinvika [58]

Answer:

Price Elasticity of Demand= \frac{Percentage change in Demand}{Percentage change in Price}

At Price = P_{0}

Quantity demanded = Q_{0}

At Price = P_{1}

Quantity Demanded = Q_{1}

Now,

Percentage change in Demand = \frac{(Q_{1} - Q_{0})}{Q_{0}}

Percentage change in Price = \frac{(P_{1} - P_{0})}{P_{0}}

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{Q_{0}}}{\frac{(P_{1} - P_{0})}{P_{0}}}

Above formula if used will give the correct answer related to Price Elasticity of Demand.

Another variant of above formula is also being used on prominent basis.

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{(Q_{1} + Q_{0})} }{\frac{(P_{1} - P_{0})}{P_{1} + P_{0}} }

Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.

5 0
3 years ago
Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di
I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0
3 years ago
What is collision insurance
Anna71 [15]
Its a coverage that helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object, such as a fence or a tree

^^from google
5 0
3 years ago
Read 2 more answers
the deployment time of an airbag should be between 21 and 27 milliseconds and their current average is 22 milliseconds with a st
alekssr [168]

Answer:

4.00

Explanation:

Given:

Upper Specification Limit, USL = 27

Lower Specification Limit, LSL = 21

Mean = 22

Standard deviation, \sigma = 0.25

Required:

Find the process capability index

First center the mean by taking the average of the LSL and USL.

X = \frac{21 + 27}{2}

\frac{48}{2} = 24

X = 24

Use formula below to find process capability index:

C_p_i = min [(\frac{USL - X}{3*\sigma}), (\frac{X - LSL}{3*\sigma})]

C_p_i = min [(\frac{27 - 24}{3*0.25}), (\frac{24 - 21}{3*0.25})]

= min [(\frac{3}{0.75}), (\frac{3}{0.75})]

min [ (4.00), (4.00)]

We are sullosed to take the minimum value, but since both values are equal, our process capability index will be 4.00

Therefore, the process capability index = 4.00

7 0
3 years ago
Other questions:
  • Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre
    8·1 answer
  • Which of the following is the BEST statement about marketing and selling?
    6·1 answer
  • Which is the correct order of entities who benefit when banks make a profit
    6·2 answers
  • Which of the following is a disadvantage of using the net present value method of evaluating an investment proposal? a. It consi
    5·1 answer
  • Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one mor
    8·1 answer
  • Vnich of the following a Morales ik rom diving area
    6·1 answer
  • The 3 levels that brand positioning can be achieved​
    10·1 answer
  • Suppose that a country's economy is operating at an unemployment rate 6% higher than its natural rate of unemployment. Then a(n)
    12·1 answer
  • Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six w
    11·1 answer
  • Michael works as a financial advisor in a doctors office. The two organizations that Michael most likely belongs to are the..
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!