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
Tpy6a [65]
3 years ago
12

During a recent lengthy strike at Morell Manufacturing Company, management replaced striking assembly line workers with office w

orkers. The assembly line workers had been paid $18 per hour while the office workers are only paid $10 per hour. What is the most likely effect on the labor variances in the first month of this strike? Labor Rate Variance Labor Efficiency Variance A) Unfavorable No effect B) No effect Unfavorable C) Unfavorable Favorable D) Favorable Unfavorable
Business
1 answer:
Jobisdone [24]3 years ago
3 0

Answer: D) Favorable Unfavorable

Explanation:

To begin, it is worthy of note that in Variance, if something is said to be Favourable, it means a negative Variance because less resources than planned were spent. When it is Unfavourable, it means a positive balance variance.

Now, The formula for Labour Rate Variance is as follows,

LABOUR RATE VARIANCE=(ACTUAL RATE-STANDARD RATE)*ACTUAL HOURS WORKED

Seeing as the old workers were being paid $18, and the new office ones were paid $10, we can see that to be the actual rate was less than the standard rate. This would mean that there was a FAVOURABLE balance.

Labour Efficiency is calculated in a similar way,

LABOUR EFFICIENCY VARIANCE=(ACTUAL HOURS WORKED-STANDARD HOURS)*STANDARD RATE.

Now, these are Office workers not assemblyline workers. They do not have the experience to work in such a way that they produce as fast or as efficiently as their striking Assemblyline colleagues.

This would then mean that their actual hours will be MORE than the standard rate which can only lead to an UNFAVOURABLE BALANCE.

You might be interested in
BPS reported the following data for its first year of operations: Sales Revenue $8,000 Cost of Goods Available for Sale 6,200 Op
Fittoniya [83]

Answer:

D. $952

Explanation:

The computation of the net income in the case when the LIFO is elected

Particulars AMount

Net sales    $7,232   ($8,000 - $640 - $128)

less : cost of goods sold ($6,200 - $820) $5,380

Gross Profit $1,852

Less: Operating Expenses   $900

Income before taxes $952

less: Income tax $0

Net income $952

Hence, the net income is $952

5 0
3 years ago
In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and selle
V125BC [204]

Answer:

True

Explanation:

In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers. Market price is set by the forces of demand and supply.

If the seller attempts to set his own price and sets it above the market price, the seller would lose all its customers and make zero sales.

If the seller attempts to set his own price and sets it below the market price, the seller would make losses .

I hope my answer helps you.

7 0
3 years ago
Which of the following would best describe what would happen to the time value at the same nominal annual rate of a cash flow as
djverab [1.8K]

Answer:

A) Both the present value and future value would increase.

Explanation:

If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.

Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.

7 0
3 years ago
1. Mixed economies have aspects of both
Ronch [10]
1) Mixed economies are a mix of Command (regulated by the government) and free (Market) economy - the answer is b)
2)Today most countries have a mixed economy, there are few (such as North Korea) which have a command economy, but none have a true free market (for example drugs are regulated)
3)Inflation means that one needs more money to buy the same goods - this is measured by a rising Consumer Prize index (answer d)
4) this indicator would be a steady, but low inflation - but inflation is bad for the economy but lack of inflation is not really stable
7 0
3 years ago
Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti
guapka [62]

Answer:

$577 Unfavorable

Explanation:

The calculation of spending variance for dye costs is shown below:-

Spending variance for dye cost = (Standard rate - Actual variable) × Actual units

= ($0.67 - $13,910 ÷ 19,900) × 19,900

= (0.67 - 0.69899) × 19,900

= $577 Unfavorable

Therefore for computing the spending variance for dye costs we simply applied the above formula.

4 0
3 years ago
Other questions:
  • Under Treasury Circular 230, which of the following actions of a CPA tax advisor is characteristic of a best practice in renderi
    13·1 answer
  • A company is deciding if it should design an advertising system for use on Twitter©. The first option is to skip out on designin
    5·1 answer
  • Jamarcus, a full-time student, earned $3,700 this year from a summer job. He had no other income this year and will have zero fe
    6·1 answer
  • The contact lens company, Here's Clear Eye, sold thousands of pairs of contact lenses in Kenya. The lenses were defective and re
    13·1 answer
  • Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no begi
    11·1 answer
  • Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units
    10·1 answer
  • Interpretation of intelligence test scores is based on the assumption that the scores are normally distributed within a populati
    11·1 answer
  • Gutierrez Company reported net income of $193,400 for 2017. Gutierrez also reported depreciation expense of $45,600 and a loss o
    13·1 answer
  • According to the Centers for Disease Control and Prevention, "SIDS is defined as the sudden death of an infant less than 1 year
    12·1 answer
  • Describe the use of a credit card vs a debit card.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!