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
quester [9]
3 years ago
12

Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.6 liters per unit

Standard price $ 2.10 per liter Standard cost $ 15.96 per unit The company budgeted for production of 3,400 units in April, but actual production was 3,500 units. The company used 27,200 liters of direct material to produce this output. The company purchased 19,700 liters of the direct material at $2.2 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:a.$1,564 U
b.$1,496 U
c.$1,564 F
d.$1,496 F
Business
1 answer:
frosja888 [35]3 years ago
6 0

Answer:

Direct material quantity variance= $1,260 unfavorable

Explanation:

Giving the following information:

Standard quantity of 7.6 liters per unit

Standard price $ 2.10 per liter

The company budgeted for production of 3,400 units.

The actual production was 3,500 units.

The company used 27,200 liters of direct material to produce this output.

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 3,500 units* 7.6= 26,600

Direct material quantity variance= (26,600 - 27,200)*2.1= $1,260 unfavorable

<u>It is unfavorable because the company used more material than estimated to produce 3,500 units.</u>

You might be interested in
Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. In the Machining Dep
Shtirlitz [24]

Answer:

The answer is: D

Explanation:

At the end of the financial year, manufacturing companies have to assign costs to the goods which they produced in that period. At year end, the production does not stop, therefore, there could be items still in production at reporting date. In order to give as accurate information as possible, the company has to cost the production items with an estimate of the total items produced. Equivalent units of production refer to the summation of items that have been started and completed during the reporting period and the items still undergoing production at their estimated stage of completion. This provides an approximation of the total units of production, had the incomplete items been counted as complete at their estimated stage of completion.

Example: if 3,000 units were started and completed during the period and 2,000 units were in closing inventory at 60% completion, then the total equivalent units of production would be equal to 4,200 units (3,000 + (2,000*60)).

Using the First in First Out Method:

Equivalent units of Production =  Total units completed during the period + Units in Ending WIP

Note1: the question indicates the equivalent units of production for the <u>materials</u> in the Machining Department.

Materials are introduced at the beginning of the production process, making them 100% complete at the end of the period. Equivalent units of production for materials is therefore 12,600(8,600+4000)

Note2: 8,600 from the above calculation consists of:

Opening balance of 6,000 units at 100% completion - Materials

Started and completed during the period 2,600 units -Materials

4,000 units in the closing balance are 100% complete in terms of Materials

4 0
3 years ago
The net increase or decrease in Retained Earnings for a period is recorded by closing entries.
luda_lava [24]

Answer: True

Explanation: The retained earnings are recorded after closing the accounts of the income statement, the surplus called profit or the missing called loss is transferred to equity through the non-distributed profit item.

This undistributed profit account also closes during the accounting period, to clarify how much was generated in a period, they are not like the balance sheet accounts that are cumulative.

8 0
3 years ago
Service factors are the functions available on the website to provide direct support in the transaction process. T/F
Eva8 [605]

Answer:

The correct answer is False.

Explanation:

Every client expects and wishes to be treated with correction in an establishment. Feel well received, appreciate that it is important for the company, perceive that it is well valued. He also hopes that the relationship will be pleasant and that the bidder will fulfill his commitments.

These factors are valued in the customer service both face-to-face or telephone or virtual: courtesy, credibility, speed, personalization, professionalization and the tangible aspect of the service.

It is necessary to give a courteous treatment to the client. Courtesy is reflected in the consideration shown to customers. Treat them with the respect they deserve.

5 0
3 years ago
The process of exchange of goods or services from sellers to buyers is referred to as:
aliina [53]

Answer:

Marketing

Explanation:

Hope this helps!

3 0
2 years ago
Over time, the average consumer will be better off from reduced trade barriers by ________.
AVprozaik [17]

Answer:

a. greater variety and lower prices

Explanation:

Due to the comparative advantages, countries can produce the product that they have proficiency. For example, if there are 2 countries, A and B. A have a  skill of producing tasty wine, they can produce better quality of wine than B with the lower cost. When the trade barriers are reduced, the wine from A will be sold in B, the customer will have more choices of wine in the market and the price will relatively less different comparing to the price when the high barriers exist.

6 0
3 years ago
Other questions:
  • What phase of the business cycle would be marked by an increase in productivity while employment and profits also rise
    8·1 answer
  • Smith &amp; Sons, Inc., is authorized to issue one million shares of $1 par value common stock. The company actually sells 500,0
    13·1 answer
  • A stock has had returns of 12 percent, 19 percent, 21 percent, −12 percent, 26 percent, and −5 percent over the last six years.
    9·1 answer
  • Fein Company provided the following information relating to cash payments:
    13·1 answer
  • Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $
    6·1 answer
  • High levels of inventory hide problems within a production system. Some of the problems that high inventory hide are quality pro
    5·1 answer
  • Required: a. How many customer records are stored in the database? b. List customers who live in New York. c. List customers wit
    15·1 answer
  • Pharoah Company has accumulated the following budget data for the year 2020. 1. Sales: 31,410 units, unit selling price $89. 2.
    6·1 answer
  • Based on this case, why is it necessary to have laws related to sharing confidential information? to prevent businesses from man
    11·2 answers
  • For those wishing to purchase a franchise, the Federal Trade Commission acts as a guardian ensuring that the business idea is so
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!