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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.

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Arbor Corporation reports the following: Sales revenue $183,000; ending inventory $12,600; beginning inventory $15,600; purchase
spin [16.1K]

Answer: Cost of goods sold = $62500

Explanation:

Given that,

Sales revenue = $183,000

Ending inventory = $12,600

Beginning inventory = $15,600

purchases = $64,000

purchases discounts = $4,000

purchase returns and allowances = $1,500

freight-in = $1,000

freight-out = $500

Cost of goods sold = Beginning inventory + purchases - purchases discounts - purchase returns and allowances + freight-in - Ending inventory

= $15,600 +  $64,000 - $4,000 - $1,500 + $1,000 - $12,600

= $62500

4 0
3 years ago
An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing fi
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Answer:

c) AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.

Explanation:

As accounting and auditing guide which is issued by AICPA for health care 3 gives full guidance on how to deal with financial reporting issues for the hospital so the accountant would look into it for any problem related to it.

8 0
3 years ago
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio
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Answer:

A. Differential Analysis dated March 16

                                    Reject            Accept

Sales revenue per unit  $0              $7.20

Variable production cost 0                5.00

Additional export tariff     0                 1.08

Total variable costs          0             $6.08

Net income                    $0                $1.12

B. The special order should be accepted.

2) Product B:

Revenue of $39,500

Variable cost of goods sold of $25,500

Variable selling expenses of $16,500

Fixed costs of $15,000

Operational loss $17,500

Differential Analysis of May 9

                                    Reject            Accept

Sales revenue             $0                $39,500

Variable costs:

Product                        $0                 25,500

Selling                          $0                  16,500

Fixed costs                  $15,000         15,000

Total costs                   $15,000      $57,000

Net loss                       $15,000       $17,500

B) Product B should be discontinued.

Explanation:

a) Data and Calculations:

Normal selling price per unit of Product A = $9.60

Special order price for the export market = $7.20

Variable production cost = $5.00 per unit

Additional export tariff = $1.08 ($7.20 * 15%)

Total variable production and export costs = $6.08

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Which of the following is NOT a reason to complete the Free Application for Federal Student Aid (FAFSA)?
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Answer:

its no obligadp

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