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Helen [10]
3 years ago
11

Purvis Manufacturing, which produces a single product, has prepared the following standard cost sheet for one unit of the produc

t. Direct materials (6 pounds at $2 per pound) $12 Direct labor (2 hours at $12 per hour) $24 During the month of April, the company manufactures 300 units and incurs the following actual costs.
Direct materials purchased and used (1,850 pounds) $4,070
Direct labor (620 hours) $7,130
Compute the total, price, and quantity variances for materials and labor. Identify whether the variance is favorable or unfavorable?
Business
1 answer:
bulgar [2K]3 years ago
4 0

Answer:

1. Actual Quantity = 1,850 pounds

Actual materials cost = $4,070

Standard rate per pound = $2

Standard Quantity = 6 pounds per unit * 300 units

Standard Quantity = 1,800

Standard materials cost = Standard Quantity * Standard rate per pound

Standard materials cost = 1,800 * $2

Standard materials cost = $3,600

1a. Total Materials Variance = Actual materials cost - Standard materials cost

Total Materials Variance = $4,070 - $3,600

Total Materials Variance = $470 Unfavorable

1b. Materials Price Variance = Actual materials cost - Actual Quantity * Standard rate per pound

Materials Price Variance = $4,070 - 1,850 * $2

Materials Price Variance = $370 Unfavorable

1c. Materials Quantity Variance = Standard rate per pound * (Actual Quantity - Standard Quantity)

Materials Quantity Variance = $2.00 * (1,850 - 1,800)

Materials Quantity Variance = $100 Unfavorable

2. Actual labor hours = 620

Actual labor cost = $7,130

Standard rate per hour = $12

Standard labor hours = 2 hours per unit * 300 units

Standard labor hours = 600

Standard labor cost = Standard labor hours * Standard rate per hour

Standard labor cost = 600 * $12

Standard labor cost = $7,200

2a. Total Labor Variance = Actual Labor cost - Standard Labor cost

Total Labor Variance = $7,130 - $7,200

Total Labor Variance = $70 Favorable

2b. Labor Price Variance = Actual Labor cost - Actual labor hours * Standard rate per hour

Labor Price Variance = $7,130 - 620 * $12

Labor Price Variance = $310 Favorable

2c. Labor Quantity Variance = Standard rate per hour * (Actual labor hours - Standard labor hours)

Labor Quantity Variance = $12.00 * (620 - 600)

Labor Quantity Variance = $240 Unfavorable

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Answer: $237070

Explanation:

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The amount that Novak should report as its December 31 inventory will be $237070

8 0
2 years ago
____________the market school aruges that forward exchange rates do the best possible job for forecasting future spot exchange r
rjkz [21]

Answer:

Efficient market school.

Explanation:

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

<em>Hence, according to the efficient market school it would be a waste of time investing in exchange rate forecasting services because all the information about an asset or security is already factored into their prices and as a result of the randomness of the market. </em>

8 0
2 years ago
What is the present value of the following set of cash flows discounted at 10 per year?
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The present value of the following set of cash flows discounted at 10 per year $104.18

<h3>What are the 3 kinds of cash flows?</h3>

There are three cash flow types that organizations should track and analyze to resolve the liquidity and solvency of the business: cash flow from operating movements, cash flow from investing activities, and cash flow from financing activities. All three are included on a company's cash flow statement.

<h3>What are cash flows illustrations?</h3>

Cash and cash matches include currency, petty cash, bank accounts, and other highly liquid, short-term assets. Examples of cash matches include saleable paper, Treasury bills, and short-term state bonds with adulthood of three months or less.

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3 0
1 year ago
Arkansas Corporation manufactures liquid chemicals A and B from a joint process. It allocates joint costs on the basis of sales
Dvinal [7]

Answer:

The company's cost to produce 1,000 gallons of product B is $7,131.25.

Explanation:

This can be calculatd as follows:

Product B share of joint cost = (Product B sales value / (Product B sales value + Product A sales value)) * Cost to split-off point = ($32.20 / ($32.20 + $3.00)) * $5,500 = 0.914772727272727 * $5,500 = 5,031.25

Product B total additional separable process beyond split-off = Additional cost per gallon * Number of gallons of product B produced = $2.10 * 1,000 = $2,100

Therefore, we have:

Company's cost to produce 1,000 gallons of product B = Product B share of joint cost + Product B total additional separable process beyond split-off = 5,031.25 + $2,100 = $7,131.25

Therefore, the company's cost to produce 1,000 gallons of product B is $7,131.25.

4 0
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fenix001 [56]

Answer:

NOT-unless the court believes that justice would be served.

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