Answer:
So a favorable material price variance might be more than offset by an adverse usage variance
Explanation:
<em>Material price variance</em>
<em>A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. </em>A favourable variance is recorded where the actual total cost of materials of a given quantity is lower that the standard cost. While an adverse variance implies the opposite
<em>Material usage variance</em>
<em>A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used.</em> A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite
<em>Relationship between Usage variance and Price variance</em>
Where savings are made from purchase of cheap and inferior quality materials these might lead to an adverse usage variance by a greater value .This is so because workers might need to use a larger quantity ( more than the standard required) of a low-quality materials to achieve production.
So a favourable material price variance might be more than offset by an adverse usage variance
Answer:
22.98%
Explanation:
Here, the current entry means the ratio between the long term debt and the total assets
In mathematically,
= Long term debt ÷ total assets
where,
Total assets = Account receivable + cash + inventories + net fixed assets
= $397,400 + $47,500 + $288,000 + $999,000
= $1,731,900
And, the long term debt is $398,024
Now put these values to the above formula
So, the ratio would equal to
= $398,024 ÷ $1,731,900
= 22.98%
Your answer is market ((: I hope this answer helps you !
Answer:
1.72
Explanation:
SOLUTION
Cost of labor = $ 2000
Cost of material= $ 400
Overhead labor= $500
Multifactor productivity = (Value of Output/(Labor Cost + Material Cost + Overhead Cost))
(500 units)($10/unit)÷( $2,000 + $400+ $500)
= $5000÷$2900
= 1.72
