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nadezda [96]
3 years ago
11

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour

s and its standard cost card per unit is as follows: Direct materials: 5 pounds at $11 per pound $ 55 Direct labor: 3 hours at $12 per hour 36 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. Direct laborers worked 63,000 hours at a rate of $13 per hour. Total variable manufacturing overhead for the month was $510,930.
Business
1 answer:
nikklg [1K]3 years ago
3 0

<u>Explanation:</u>

1. Calculation of labor spending variance for the month of march

Labor spending variance = (Actual rate x actual hours)- (Standard rate x Standard hours)

=(13 x 63000) - (12 x (26000 x 3))

=-1,38,600

Labor spending variance for the month of March is $138600

2.Calculation of variable manufacturing overhead planning cost

Variable manufacturing overhead planning cost= (Planning budget units x required hours x cost per hour)

=(21000 x 3 x7)

=441,000

Variable manufacturing overhead planning cost is $441,000

3. Calculation of Variable manufacturing overhead cost

Variable manufacturing overhead  cost= (Actual units x required hours x cost per hour)

=(26600 x 3 x7)

=$558,600

Variable manufacturing overhead  cost is $558,600

4. Calculation of Variable overhead rate variance

Variable overhead rate variance= Actual hours ( actual rate - standard rate)

=63000((510930/63000)-8)

=63000(8.11-8)

=63000(0.11)

=6930

Variable overhead rate variance is =6930

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Answer:

<em><u>Classifying Cash Flows:</u></em>

Retirement of bonds payable  ⇒  <em><u>Financing activity</u></em>

Purchase of inventory for cash  ⇒  <u><em>Operating activity</em></u>

Cash sales  ⇒  <u><em>Operating activity</em></u>

Repurchase of common stock  ⇒  <em><u>Financing activity</u></em>

Payment of accounts payable  ⇒  <u><em>Operating activity</em></u>

Disposal of equipment ⇒  <em><u>Investing activity</u></em>

8 0
3 years ago
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is t
Blababa [14]

Answer:

the opportunity cost of going to work on saturday is $32

Explanation:

The opportunity cost of going to work on saturday is as follows:

= Income earned on saturday - psychic cost

= 4 hours × $11 - ($2 × 4 hours)

= $44 - $8

= $32

hence, the opportunity cost of going to work on saturday is $32

8 0
2 years ago
Which food was received in the temperature danger zone
Luba_88 [7]
Temperature danger zone is defined as the specified range of temperature at which micro organisms grow rapidly in food. The danger zone ranges from 40F to 140F. To keep food out of danger zone, cold food must be kept at or below 40F while hot food must be kept at or above 140F. From the question given above, three of the food fall in the temperature danger zone, but cottage cheese is still safe at 40F because of the fermentation process by which it was made and shell egg is still safe at 43F because it has shell to protect it. Thus, the correct answer is POTATO SALAD AT 46F.
5 0
3 years ago
You just purchased an existing business that produces solar panels according to the following production function:
frez [133]

Answer:

<u>$50</u>

<u>Explanation</u>:

In the production function, Q = K0.5L0.5,

K denotes the fixed input in the short run.

First, we calculate the total cost:

Cost of Capital= 25 x $1 = $25

Cost of Labor (for a start 25 workers are used)= 25 x $1 = $25

Total= $50

Since the price of the solar panels is $100, substrating from the total cost $50 (100-50) we get $50 profit per unit of solar panel.

4 0
3 years ago
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Citrus2011 [14]

Answer:

The answer is A. Mutual mistake

Explanation:

A contract is an agreement ( whether written or verbal ) between two parties that is legally binding.  

A mutual mistake occur in a contract when both parties to a contract are mistaken about a material fact. It is a situation where the parties to a contract have identical misconception about a material fact in the contract.

In the explanation given in the contract between Randolf and the Art gallery manager, it is obvious that the art painting that is to be bought and sold was not well clarified by both parties, and the art manager acted based on an invalid assumption.

Hence the correct answer to this question is  A. Mutual mistake

7 0
3 years ago
Read 2 more answers
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