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AVprozaik [17]
3 years ago
14

Porter Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product.

The allocation base for variable overhead costs is direct labor hours. At the beginning of the​ year, the static budget for variable overhead costs included the following​ data: Production volume 6 comma 400 units Budgeted variable overhead costs $ 13 comma 500 Budgeted direct labor hours​ (DLHr) 640 hours At the end of the​ year, actual data were as​ follows: Production volume 4 comma 200 units Actual variable overhead costs $ 15 comma 300 Actual direct labor hours​ (DLHr) 485 hours What is the variable overhead efficiency​ variance? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.)
Business
1 answer:
kkurt [141]3 years ago
5 0

Answer:

1,370.85 Unfavorable

Explanation:

Standard rate :

= Budgeted variable overhead costs ÷ Budgeted direct labor hours

= $13500 ÷ 640

Direct labor hours = $21.09 per direct labor hour

Standard time to produce goods :

= Budgeted direct labor hours  ÷ Production volume

= 640 ÷ 6,400

= 0.10 hours

VOH Efficiency Variance

= ( SH − AH ) × SR

where,

SH are standard direct labor hours allowed

AH are the actual direct labor hours

SR is the standard variable overhead rate

(SH − AH ) × SR

= [(4,200 × 0.10) - 485] × $21.09

= (420 - 485) × $21.09

= 1,370.85 Unfavorable

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Explanation:

7 0
2 years ago
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If one of the objective coefficients changes within of its allowable increase or allowable decrease (same as within of Maximum a
iVinArrow [24]

Answer:

A. The final objective function value will change by the size of the change times the final value of the decision variable related to this objective coefficient.

Explanation:

By modifying the one coefficient of the objective with the rise or decrease in the permitted modify the amount of the objective function i.e. final. Also the magnitude of modifying the value would be equivalent to the modify of the change in terms of coefficient times the final value with respect to the decision variable that is interrelated to the coefficient of the objective

hence, the correct option is a.

8 0
3 years ago
The intent of corporate advertising is to make sure that all of a company's products are seen in a common, positive manner. True
evablogger [386]

Answer:

False since the intent of corporate advertising is usually done to ensure that the perception of the company's image is positive.

Explanation:

Corporate advertising is usually done to ensure that the perception of the company's image is positive. The products under the corporation is not a priority in this case, rather its is the company as a whole that needs to be viewed in good light.

This kind of advertising forms part of the public relations techniques used by the company or institution to improve its public image. There are so many companies with different brands under them that utilize this advertising technique to improve their standing in the public eye. It is a way of making the company itself to be a brand by advertising the company as a package.

These companies always want to prove that they care more about the public than they care for the products, in this way they create the perception that the company is primary and anything else is secondary.

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6 0
3 years ago
In January of 2018, the Phillips Company purchased a patent at a cost of $100,000. In addition, $10,000 in legal fees were paid
soldi70 [24.7K]

Answer:

The answer is: $113,000

Explanation:

By 2020, Phillips Company had already amortized $22,000 of the patent expenses (2 years x [10% x ($100,000 + $10,000)]). Since it lost its patent defense in 2020, it will now have to write off $113,000 ($88,000 pending amortization + $25,000 in legal fees) for the adjustment of its 2018 income.

5 0
4 years ago
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be d
9966 [12]

Answer:

depreciation expense 2021 = $6,200

depreciation expense 2022 = $6,700

Explanation:

depreciable value = $29,000 - $200 = $28,800

depreciation expense per mile driven = $28,800 / 144,000 = $0.20

number of miles driven during 2021 = 31,000

depreciation expense 2021 = 31,000 x $0.20 = $6,200

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depreciation expense 2022 = 33,500 x $0.20 = $6,700

8 0
3 years ago
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