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GalinKa [24]
4 years ago
9

Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual

sales and sales commissions totaled 31,500 units and $182,700, respectively. If the company used a static budget for performance evaluations, Interstate would report a cost variance of:
A. $6,300U.
B. $6,300F.
C. $8,700U.
D. $8,700F.
E. some other amount not listed above.
Business
1 answer:
lukranit [14]4 years ago
4 0

Answer:

Cost variance = 8,700 U

so correct option is C. $8,700 U

Explanation:

given data

selling = 29,000 units

sales commissions = $6 per unit

Actual sales = 31,500 units

sales commissions = $182,700

to find out

cost variance

solution

we know that Material quantity variance is express as

Material quantity variance =  sales commissions × (Actual sales - selling )

Material quantity variance = $6 × (31,500 - 29,000)

Material quantity variance = =$15,000 U

and  

Material price variance =  $182700 - $31500  × $6

Material price variance = $6,300 F

so

Cost variance = $15,000 U - $6,300 F

Cost variance = 8,700 U

so correct option is C. $8,700 U

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Answer:

$3,525.00

Explanation:

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The deposit is $750

Monthly installments =monthly fee multiplied by 15 months

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Hire purchase cost will be

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7 0
3 years ago
An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe
zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= \frac{Contribution\ margin}{Sales}

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}    

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7 0
3 years ago
Which long-term goal can a 401(k) account help you achieve?
WINSTONCH [101]
The answers are as follows:
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Prioritizing is the process of arranging the things we need to accomplish in the order of their importance and then executing them according to their importance. Prioritizing helps one to focus one's energy on the most important thing.
9. A guess or estimate of what something will be like in the future.
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10. Reserve.
Reserve refers to the amount of money you have set aside for use in case of emergency. Emergency happens at all time, at such times, it will be best to have a certain amount of money in place to cater for such emergencies. This type of money is called reserve.
11. Increase your income by working more and decrease your expenses.
An income refers to the amount of money you are paid on a regular basis because of the services your render, while expenses refers to the amount of money you spend on your needs. In order to be able to save enough money, you have to increase your income and decrease your expenses.
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An earned income refers to an income which you work for, that is, you render particular services before the money is paid to you. Wages refers to the money that are paid to workers either on daily basis or on weekly basis, therefore, wages is an earned income.
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Answer:

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