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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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Give some examples of each of the three ""occasions for decision"" cited by Chester Barnard. Explain in your own words why Barna
Likurg_2 [28]

Answer: The three "occasions for decision" are:

1. From authoritative communications from superiors

2. From cases referred for decision by subordinates

3. From cases originating in the initiative of the executive command

Explanation: Examples of the three "occasions for decision" are:

1. From authoritative communications from superiors: an increase in the annual target of a sales force, passed on from the director to the sales manager.

This type of decision making is usually about the application of an instruction.

2. From cases referred for decision by subordinates: decision to employ branch level staff, whose engagement is within the right of the branch manager  

This occasion for decision shows a lack of authority in subordinates or an inability to be decisive in the subordinate.

3. From cases originating in the initiative of the executive command: the CEO deciding to take his brick and mortar business completely online.

This is a decision that that is totally the product of the executive head's thoughts, it is usually a strategic level decision and opens his authority to criticism.

Chester Barnard believed that this is the most important occasion for decision because the executive head is best placed to make these decisions in the organization. He has the authority as well as resources to ensure that the decision is followed through.

I also agree that this is the most important occasion for decision. While they are difficult decisions, they can determine the direction of an organization.  There is no one better qualified than the executive command to make or initiate these decisions. Also, it is part of their responsibility to make these decisions.

6 0
3 years ago
Investor Palmer has a diversified portfolio consisting of equity and debt valued at $365,000 at the start of the year. During th
garri49 [273]

Answer:

The return after taxes is 7.9%

Explanation:

At the start of the year the portfolio is valued at $365,000.

At the end, his portfolio has returns by dividends ($3,579), interests ($2,783) and portolio's valuation (389,648-365,000=$24,648).

The tax is applied to the dividends and interests, as:

Tax = 0.35 * (3579+2783) = 0.35*6362 = $2,226.70

We can then calculate the investor's return as

R = profit after taxes / initial portfolio valuation

R = ((3579 + 2783 - 2226.70)+24648)/365000

R= 28,783.30 / 365,000 = 0.079 = 7.9%

5 0
3 years ago
The midpoint method is used to compute elasticity because it A. automatically rounds quantities to the nearest whole unit. B. gi
gizmo_the_mogwai [7]

Answer:

B. gives the same answer regardless of the direction of change

Explanation:

The computation of the price elasticity of demand using mid point formula is shown below:

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

where,

Percentage change in quantity demanded is

= (change in quantity demanded ÷ average of quantity demanded)

And,

The percentage change in price is

= (percentage change in price ÷ average of price)

Therefore, it reflects the same answer  

6 0
3 years ago
Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treas
Butoxors [25]

Answer:

making loans

Explanation:

Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc

Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans

Hence, the first option is correct

7 0
3 years ago
Suppose Nippon Technology had the following results related to cash flows for 2020: Net Income of $8,400,000 Adjustments from Op
Flauer [41]

Answer:

$9,800,000

Explanation:

                Statement of Cash Flows (Indirect Method)

Particulars                                                                           Amount

Net income                                                                      $8,400,000

Add: Adjustment for operating activities                      -<u>$1,300,000</u>

Net cash flow from Operating Activities (I)                    $7,100,000

Add: Net Cash Flow from Investing Activities (II)         -$1,300,000

Add: Net Cash Flow from Financing Activities (III)        <u>$4,000,000</u>

Net Cash Flow (I+II+III)                                                   <u>$9,800,000</u>

4 0
3 years ago
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