All categories

3 years ago

The following company information is available. The direct materials quantity variance is:

Business

1 answer:

LiRa [457]3 years ago

6 0

Answer:

Direct material quantity variance= $9,600 unfavorable

Explanation:

Giving the following information:

Direct materials used for production 36,000 gallons

Standard quantity for units produced 34,400 gallons

Standard cost per gallon of direct material $6.00

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

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

Direct material quantity variance= (34,400 - 36,000)*6

Direct material quantity variance= $9,600 unfavorable

You might be interested in

Which of the following organizations mission is to establish and improve standards of financial accounting and reporting for the

yarga [219]

Answer:

B. The Financial Accounting Standards Board

Explanation:

The Mission of AICPA is, 'to Power the success of global business, CPAs, CGMAs and specialty credentials by providing the most relevant knowledge, resources and advocacy, and protecting the evolving public interest'.
The Mission of the Public Company Accounting Oversight Board is to 'oversees the audits of public companies and SEC-registered brokers and dealers in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports'.
The Misson of the Governmental Accounting Standards Board is to 'to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports'.

8 0

3 years ago

QS 18-11 Margin of safety LO P2 Zhao Co. has fixed costs of $455,600. Its single product sells for $191 per unit, and variable c

babunello [35]

Answer:

The margin of safety in dollars is $611,200 and the margin of safety percent is 32%

Explanation:

In order to calculate the margin of safety in dollars and as a percent of expected sales If the company expects sales of 10,000 units we would have to calculate the following:

margin of safety in dollars=Margin of Safety units*sold price

sold price=$191 per unit

Margin of Safety units = Sales - Breakeven units

sales=10,000 units

Breakeven units = Fixed cost/Contribution margin per unit

B reakeven units= $455,600/($191-$124) =

B reakeven units= 6800

Margin of Safety units =10,000 - 6.800

Margin of Safety units =3,200

Therefore, Margin of Safety in dollars = 3,200*$191

Margin of Safety in dollars =$611,200

Margin of Safety percent=Margin of Safety units/sales

Margin of Safety percent= 3,200/10,000

Margin of Safety percent=32%

The margin of safety in dollars is $611,200 and the margin of safety percent is 32%

7 0

4 years ago

A union representative observed that if the union members' wages were increased by some proportion, the workers would eventually

Scorpion4ik [409]

Answer:

Explanation:

The union representative in this question is of the view that if there should be an increase in the amount of wages that union members receive, the workers tend to suffer a greater decline than proportional decline in employment. What he is trying to drive at is that should the wages be increased, there will not be a proportional decrease in the unemployment but rather a greater decrease in it.

What the question now seeks to know is that in what scenario would the assertion of this labor representative is true?

Now, this assertion made by him could be true if capital could replace union labor. The reason is this, even if the number of wages is increased, in a situation where labor is irreplaceable by capital cost, there would only be a proportional decline in the number of workers needed as there is no direct alternative for the labor if offset. But in a case where there are alternatives, for example having a machine that could carry out the same process, this in terms of capital cost acquisition, there would obviously be a decrease in the amount of labor force needed, and hence, a decline

8 0

3 years ago

Residential Electricity Commercial Electricity Residential Natural Gas

salantis [7]

Answer:

Refer explanation

Explanation:

Price elasticity of demand is the % change in quantity demanded to a % change in price. There are five degrees of price elasticity of demand:

1. Perfectly elastic: Quantity demanded changes even without a change in price.

2. Elastic: Change in price causes a higher change in quantity demanded. PED > 1

3. Unit elastic: Change in price leads to a proportionate change in quantity demanded. PED = 1.

4. Inelastic: Change in price creates a lower change in quantity demanded. PED < 1

5. Perfectly inelastic: Even if price changes, there is no change in quantity demanded.

a. In the short run, PED for residential electricity is 0.24. This is less than 1, suggesting that PED is inelastic. Hence, a change in price will lead to a smaller change in quantity demanded.

b. Commercial electricity has a PED of 0.21 which is similar to residential electricity but it can be said that it is more price inelastic than residential electricity of 0.03 (0.24 - 0.21). Hence, a change in price will create an even smaller change in quantity demanded than residential electricity.

c. In the long run, residential PED is 0.32 whilst commercial PED is 0.97. Whilst both are still inelastic, it can be said that commercial electricity demand is now much more responsive to price than it was in the short run. Since 0.97 is closer to 1, it can be assumed that a change in price will create an almost proportionate change in quantity demanded. The reason that both electricity demand is less inelastic in the long run is since now they have more time to adjust and switch to other substitutes.

d. Price elasticity of demand is calculated as the % change in quantity demanded divided by the % change in price.

PED = % change in Qd / % change in price

When substituted for residential electricity in the long run

0.32 = % change in Qd / 1

0.32 x 1 = % change in Qd

% change in Qd = 0.32

When substituted for commercial electricity in the long run

0.97 = % change in Qd / 1

0.97 x 1 = % change in Qd

% change in Qd = 0.97

8 0

3 years ago

The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 11

poizon [28]

Answer:

Incremental income is $ 229,840

Explanation:

Computation of additional income

Incremental Revenues from the order 68,000 units at $ 16.95 $ 1,152,600

Cost of Goods sold

Existing Cost of Goods sold $ 6.834,000

Less: Fixed Manufacturing overhead $ 1,380,000

Variable cost of goods sold $ 5,454,000

Existing production units 402,000

Variable Cost of goods sold per unit 13.57 per unit

Incremental cost of goods sold 68,000 * $ 13,57 $ 922.760

Incremental income $ 229,840

No increase is considered in fixed manufacturing overhead since it is fixed and sufficient capacity is available for the order. No incremental operating expenses is also envisaged as per then info in the question

5 0

3 years ago