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
You might be interested in
Answer:
If we compare the p value and the significance level given we see that
so we can conclude that we have enough evidence to fail reject the null hypothesis, so we can't conclude that the true mean is significantly lower than 6.25 at 1% of signficance.
Explanation:
Data given and notation
represent the sample mean
represent the sample population deviation
sample size
represent the value that we want to test
represent the significance level for the hypothesis test.
t would represent the statistic (variable of interest)
represent the p value for the test (variable of interest)
State the null and alternative hypotheses.
We need to conduct a hypothesis in order to check if the mean is less than 6.25, the system of hypothesis would be:
Null hypothesis:
Alternative hypothesis:
If we analyze the size for the sample is < 30 but we know the population deviation so is better apply a z test to compare the actual mean to the reference value, and the statistic is given by:
(1)
z-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".
Calculate the statistic
We can replace in formula (1) the info given like this:
P-value
Since is a one side test the p value would be:
Conclusion
If we compare the p value and the significance level given we see that
so we can conclude that we have enough evidence to fail reject the null hypothesis, so we can't conclude that the true mean is significantly lower than 6.25 at 1% of signficance.