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kap26 [50]
3 years ago
6

The following information describes the production activities of Mercer Manufacturing for the yearActual direct materials used 3

0,000 lbs. at $5.15 per 1bActual direct labor used 9,150 hours for a total of $186, 660Actual units produced 54,120Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.10 per pound and 10 minutes at $21.40 per hourAQ =Actual QuantitySQ= Standard QuantityAP =Actual PriceSP= Standard PriceAH =Actual HoursSH= Standard HoursAR= Actual RateSR =Standard Rate(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

Standard quantity = Actual units produced × 0.50 pound per unit

                              = 54,120 × 0.50

                              = 27,060 pounds

Standard hours = Actual units produced × 1/6 hour per unit

                          = 54,120 × 1/6

                          = 9,020 hours

Actual rate per hour = $186, 660 ÷ 9,150 hours

                                  = $20.4

(a) (i) Direct material price variance:

= (AQ × AP) - (AQ × SP)

= (30,000 × $5.15) - (30,000 × $5.10)

= $154,500 - $153,000

= $1,500 Unfavorable

(ii) Direct material quantity variance:

= (AQ × SP) - (SQ × SP)

= (30,000 × $5.10) - (27,060 × $5.10)

= $153,000 - $138,006

= $14,994 Unfavorable

(b) (i) Direct labor rate variances:

= (AH × AR) - (AH × SR)

= (9,150 × $20.4) - (9,150 × $21.40)

= $186,660 - $195,810

= $9,150 Favorable

(ii) Direct labor efficiency variances:

= (AH × SR) - (SH × SR)

= (9,150 × $21.40) - (9,020 × $21.40)

= $195,810 - $193,028

= $2,782 Unfavorable

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Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of
ZanzabumX [31]

Answer:

a. Logan's recognized gain is $38,600

b. Logan's recognized gain is $23,160

Explanation:

a. If the worth of the land for Jonathan is $183,350, then the gain recognized by Logan would be;

the lower of the realized gain between the amount realized of $231,600 - adjusted basis of $193,000 = $38,600

or the fair market worth of the received boot i.e $48,250.

Therefore, Logan's recognized gain is $38,600

b. Suppose Jonathan's land is worth, $208,440, then we can calculate Logan's recognized gain to be ;

the lower of the realized gain I.e amount realized of $231,600 - adjusted basis $193,00 = $38,600

or the fair market value of the received boot I.e $23,160 .

Therefore, Logan's recognized gain is $23,160

6 0
3 years ago
Each of the following is an example of a significant noncash activity except Group of answer choices conversion of bonds into co
Maurinko [17]

Answer: stock dividends

Explanation:

Noncash investing and financing activities are simply referred to as the significant investing and financing activities which doesn't affect cash directly.

The activities involved here include, stockholders equity etc. and they are typically found at bottom of cash flow statement.

Based on the options given, the example of a significant noncash activity will include conversion of bonds into common stock, exchanges of plant assets and the issuance of debt to purchase assets.

Therefore, the correct option will be stock dividends.

4 0
3 years ago
A(n) ______ is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.
Tema [17]

Every individual or business wants to make profit this is done by providing goods and services that satisfy people's needs and wants.

<h3>What is a business?</h3>

A business is an organization that aims at making a profit by providing goods and services that are desired by individuals also known as customers.

Business meets a need and gets profit in return.

Therefore, A Business is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.

learn more on business here

brainly.com/question/24553900

3 0
2 years ago
Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a parti
artcher [175]

Amount to be credited = $2,020

Outstanding balance = $480

Explanation:

The payment terms state that

  • 3% discount may be taken within 10 days of the invoice date (up to May 20); or  
  • 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
  • The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
  • The  3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.

Amount to be credited

= 2000 / (1−0.01)

= 2000 / (0.99)

= $2,020

Outstanding balance

= 2500 - 2020

= $480

3 0
3 years ago
The following information is available for Shanika Company for 20Y6: Inventories January 1 December 31 Materials $457,760 $563,0
Len [333]

Answer:

<h2>Shanika Company </h2>

Statement of Cost of Goods Manufactured For the Year Ended December 31, 20Y6:

Materials:

Beginning Inventory              $457,760

Purchases                                 850,190

Cost of materials available $1,307,950

Less Ending Inventory            563,040

Cost of materials used                          $744,910

Beginning Work in process                    823,970

Direct Labor                                            867,080

Factory Overhead                                  298,430

Less Ending Work in process               (765,730)

Cost of goods manufactured          $1,968,660

Explanation:

1) Data and Calculations:

a) Shanika Company for 20Y6:

Inventories          January 1     December 31

Materials               $457,760      $563,040

Work in process     823,970         765,730

Finished goods       791,920         782,630

Advertising expense $382,300

Depreciation expense-office equipment 54,050

Depreciation expense-factory equipment 72,630

Direct labor 867,080

Heat, light, and power-factory 28,720

Indirect labor 101,350

Materials purchased 850,190

Office salaries expense 296,720

Property taxes-factory 23,650

Property taxes-headquarters building 48,980

Rent expense-factory 39,980

Sales 3,980,690

Sales salaries expense 488,720

Supplies-factory 19,710

Miscellaneous costs-factory 12,390

b) Factory Overhead:

Depreciation expense       $72,630

Heat, light, and power         28,720

Indirect labor                       101,350  

Property taxes-factory        23,650

Rent expense-factory         39,980

Supplies-factory                    19,710

Miscellaneous costs            12,390

Total Factory overhead $298,430

c) The cost of goods manufactured is made up of the costs of materials, direct labor, work in process, and manufacturing overhead.

4 0
3 years ago
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