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
Zina [86]
3 years ago
14

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets

and performance reports. During May, the company budgeted for 7,300 units, but its actual level of activity was 7,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 34.80 Direct labor $ 0 $ 6.80 Direct materials 0 13.30 Manufacturing overhead 30,000 2.30 Selling and administrative expenses 26,100 0.80 Total expenses $ 56,100 $ 23.20 Actual results for May: Revenue $ 253,600 Direct labor $ 48,970 Direct materials $ 98,250 Manufacturing overhead $ 46,500 Selling and administrative expenses $ 30,530 The direct labor in the planning budget for May would be closest to:
Business
1 answer:
nadya68 [22]3 years ago
6 0

Answer:

$ 49,640

Explanation:

The question is asking for PLANNING BUDGET

Planning Budget does not in anyway mean flexible budget.

So the quantity of units for Planning Budget would be what the company budgeted that is 7,300 units

The next step in the solution to the question will be to know the cost per unit. For Direct Labor the price given is $ 6.80 per unit

Total Direct Labor for May in the planning budget would be 7,300 X 6.80 = $ 49,640

You might be interested in
Identify the accoun title.
hammer [34]

Answer:

1. On formation of new Company and receipt of cash of $ 12,000 from shareholders

Cash Dr    $ 12,000

To Share capital Cr $ 12,000

2. On purchase of truck for $ 18,000

  Truck A/c Dr $ 18,000

To Cash    Cr    $ 18,000

(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)

3. On payment of dividend in cash

Dividend A/c    Dr $ 10,000

  To Cash Cr    $ 10,000

4. On purchase of land

Land A/c Dr $ 50,000

To cash    Cr    $ 50,000

( On purchase of land on payment of $ 50,000).

There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:

Land A/c Dr    $ 55,000

To Cash    Cr    $ 50,000

To gain on purchase of land    Cr $ 5,000

5 On declaration of dividend

Dividend A/c Dr    $ 1,100

  To Dividend Payable A/c Cr $ 1,100

On payment of dividend after 60 days

Dividend payable A/c    Dr    $ 1,100

To Cash    Cr $ 1,100

6. After each month wages will be due to its workers, then accounting entry will be recorded as under

Wages A/c    Dr    $ 5,600

To Wages payable A/c    Cr $ 5,600

After two weeks, on payment of wages, the accounting entry will be recorded as under

Wages payable A/c    Dr $ 5,600

  To cash Cr    $ 5,600

Explanation:

7 0
3 years ago
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review
forsale [732]

Answer:

A.) 270 units (b.) Increase

Explanation:

Given the following :

Annual demand (A) = 2870

Working days = 205

Review period (P) = 16 working days

Lead time (L) = 2 working days

Standard deviation (σ) = 6 per working day

Service probability = 76%

Therefore, z = NORMSINV(0.76) = 0.71

Average demand (D) = 2870 / 205 = 14

Optimum target level, (S) is given by the relation:

D×(P+L) + z×σ×√(P+L)

14×(16+2) + 0.71×6×√(16+2)

(14×18) + 4.26 × √18

252 + 4.26*4.242

252 + 18.07

= 270.07 units = 270 units

B) If service probability increases to 97%, Z will automatically increase, hence a corresponding increase in the optimal target level.

7 0
2 years ago
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for e
lesya [120]

Answer:

Total cost= $930

Explanation:

Giving the following information:

Copy Center pays an average wage of $12 per hour.

Overhead rate= $18 per direct labor hour

Job M-47:

used $330 of direct materials and took 20 direct labor hours of labor to complete.

Total cost= direct material + direct labor + allocated overhead

Total cost= 330 + 20*12 + 20*$18= $930

3 0
3 years ago
Sunland company installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $12,0
padilas [110]

Answer:

D. $42,000 should be debited to Land Improvements

Explanation:

The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.

Total Land improvements = $30,000 + $12,000

= $42,000

The right answer is D. $42,000 should be debited to Land Improvements.

4 0
3 years ago
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are
tatiyna

Answer:

The correct answer is letter "A": entrepreneurs.

Explanation:

Entrepreneurship is the factor of Human Resources (HR) by which representatives are in charge of coordinating with different departments on how to allocate labor force to achieve the business operations effectively. In some cases, some policy decisions and risks will have to be taken by them.

4 0
3 years ago
Other questions:
  • Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $40,000. The estimated useful life was
    13·1 answer
  • A company named eyedetect has developed an eye tracking tool that could help detect what behavior
    6·1 answer
  • Mark a calendar year taxpayer, purchased an annuity for $50,000 in 2012. The annuity was to pay him $3,000 on the first day of e
    5·1 answer
  • Foreign currencies that are deposited in banks outside the home country are known as A. Eurobond. B. Eurocurrencies. C. foreign
    7·1 answer
  • Aguilar Company is a priceminus−taker and uses target pricing. Refer to the following​ information: Production volume 601 comma
    13·1 answer
  • Corporate annual reports typically do not contain
    5·1 answer
  • Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic pr
    9·1 answer
  • Land acquired so it can be resold in the future is listed on the balance sheet as a(n)
    10·1 answer
  • You have a project that costs $750000. It has a 0.30 chance of paying off $3 million and a 0.70 chance of paying off nothing. Wh
    10·1 answer
  • An industry consists of three firms with sales of $300,000, $700,000, and $250,000. a. Calculate the Herfindahl-Hirschman index
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!