Answer:
3.4%
Explanation:
The computation of the Purple Swift’s paint capacity cushion is shown below:
Time to paint 10 birdhouses (45 × 10 ÷ 60) 7.5 hours
Changeover time 1 hours
Total Operations time per lot (7.5 + 1) 8.5 hours
Hours available per year (8 × 220) 1760
Capacity (number of lots each year) (1760 ÷ 8.5) 207.06
Capacity (number of birdhouses each year) =207.06*10 2070.6
Actual Production given 2000
Utilization (2000 ÷ 2070.6) 96.6%
Capacity cushion = 100% - Utilization
= 100% - 96.6%
= 3.4%
Answer:
. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Explanation:
Answer: D.No. Since 26 is less than the break-even quantity, production of the product cannot produce a profit
Explanation:
At Breakeven the company will be making $0 in profit. The break-even number of units will therefore be;
0 = Revenue - costs
0 = 520x - (390x+15,340)
0 = 520x - 390x - 15,340
0 = 130x - 15,340
130x = 15,340
x = 118 units
As the break-even point is 118 units, anything below this will yield a loss. As the company has a capacity of 26 units, this is below the breakeven point so the company should not produce the good as they will surely make losses.
Answer:
The correct answer is option b.
Explanation:
The law of supply states that other things being constant, the price of the product and its supply are positively related. This means that an increase in price will cause the quantity supplied to increase and vice versa.
In a perfectly competitive market, the firms are price takers. So a decrease in the price of the product will cause its quantity supplied to decline. Or in other words, when the price falls, the firms will reduce output.
Answer:
$129,127
Explanation:
Cardinal company bank statement showed a balance of $180,974 at May 31
The reconciling items consisted of outstanding checks of $51,847
Therefore, the amount that should be shown in Cardinal cash account on May 31 can be calculated as follows
= $180,974-$51,847
= $129,127
Hence a balance of $129,127 should be shown on the Cardinal cash account on May 31
