Boyce Manufacturing Co.'s operates 3 profit centers. The clothing center’s static budget at 6,000 units of production includes $
2 answers:
Answer:
D. 900 U
Explanation:
When variance will be calculated and shown on performance report it will be, for entire cost incurred.
For all costs directly related to production that is variable cost, standard will be adjusted based on actual quantity produced, whereas standard fixed cost will not be adjusted based on quantity of units produced as is fixed in nature.
1. Standard Direct labor for actual production =
Actual expense of direct labor = $29,500
Variance = Standard - Actual = $29,000 - $29,500 = $500 U
2. Standard Direct Materials =
Actual direct material cost = $6,100
Variance = Standard - Actual = $5,800 - $6,100 = $300 U
3. Standard Variable Factory Overhead =
Actual variable factory overhead = $11,500
Variance = Standard - Actual = $11,600 - $11,500 = $100 F
4. Fixed Cost Variance = Standard - Actual = $24,000 - $24,200 =
$200 U
Total Variance in Performance Report
Every F has positive value and every U has negative Value
= - 500 - 300 + 100 - 200 = - 900
That is 900 U
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Answer:
$1,000
Explanation:
We know that
Total cost = Fixed cost + Variable cost
From the data given, we can calculate the variable cost using the high-low technique.
Variable cost per unit
=
=$15
Lease cost = FC + $15(Machine hours)
Lease cost -$15(Machine hours) = FC
Case,
i) 800 machine hours,
FC = Lease cost - $15(Machine hours)
= $16,000 -$15(1000) = $1,000
Answer:
A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa
A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.
Explanation:
Real word example of change in demand :
Changing Tastes or Preferences
From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.
Simply put it this way> Change in quantity demanded : Price change, quantity demanded change
Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference
