Answer:
The planned purchases are given as $34,500 while the value of OTB is $28,900
Explanation:
The Planned purchases is given as
Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases
So here the planned sales are 25000
The planned Reductions are 1500
The End of Month inventory is 88000
The Beginning of Month Inventory is 80000 So the value is given as
25000+1500+88000-80000= Planned Purchases
Planned Purchases =34500
The OTB is given as
OTB=Planned Purchases-Commitment
OTB=34500-5600
OTB=28900
Answer:
2) perfectly vertical
Explanation:
When the price elasticity of demand is perfectly inelastic, the demand curve is perfectly vertical. This means that the quantity demanded will remain the same no matter what price.
In this scenario, the supply curve for oranges shifted to the left due to the early freeze, which results in a price increase at every level of quantity demanded. Since the demand is perfectly inelastic, the new equilibrium price will be determined by the how much the supply curve shifts.
Answer: It is less severe than a material weakness
Explanation:
A SIGNIFICANT DEFICIENCY is described as a deficiency or an amalgamation of deficiencies that are NOT as severe as a MATERIAL WEAKNESS ( which is quite serious and must be reported to the Audit Committee and be reflected in the financial statements) but still important enough for those people in charge of the company's financial records to take notice.
Answer:
B) $ 1,614
Explanation:
Given the information
Production= 3,350 units
Direct labor cost= $159,786
Direct labor hours= 13,450
=> rate per hour = $159,786 / 13,450 = $11.88
4 direct labor-hours for 1 unit
$12.00 per direct labor-hour
Budgeted production : 3,350 + 150 = 3500 units
=> The labor rate variance for the month was:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
= ($12.00 - $11.88 )*13,450
= 1614
We choose B
