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Mrrafil [7]
3 years ago
8

Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,000 machine-hou

rs. The budgeted fixed manufacturing overhead costs are $245,000. In April, the actual fixed manufacturing overhead costs were $249,900 and the standard machine-hours allowed for the actual output were 7,300 machine-hours. Required: a. Compute the budget variance for April. b. Compute the volume variance for April.
Business
1 answer:
sergeinik [125]3 years ago
7 0

Answer and Explanation:

a. The computation of the budget variance of the month of April is shown below:

= Actual fixed manufacturing overhead costs -  budgeted fixed manufacturing overhead costs

= $249,900 - $245,000

= $4,900 unfavorable

b. The volume variance is

= (Denominator machine-hours - Standard machine-hours allowed) × Budgeted fixed overhead rate

= (7,000 machine hours - 7,300 machine hours) × $245,000 ÷ 7,000 machine hours

= $10,500 favorable

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Marx Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are
Misha Larkins [42]

Answer:

Effect on income= 7,500 increase

Explanation:

Giving the following information:

Variable costs are $0.50 per unit.

Current monthly sales are 183,000 units.

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Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.

Sales= 15,000*1= 15,000

Variable cost= 15,000*0.5= (7,500)

Effect on income= 7,500 increase

5 0
3 years ago
Read 2 more answers
A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceAn i
mafiozo [28]

Answer:

A decrease in cash flows from financing activities

Explanation:

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Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.

Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.

Whereas cash dividend received is investing activity.

Final Answer

A decrease in cash flows from financing activities.

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3 years ago
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A gain or loss may be incurred if the sale or trade of an asset is greater than or less than the __________ value of the asset.
posledela
Your answer will be a
6 0
3 years ago
If a school keeps two lists, one for student registration and one for student financial information, both containing name and ad
PIT_PIT [208]

Answer: Redundancy

Explanation:

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According to the given question, the school is basically keeping the two different list but the address and the name of the student information are similar and this is refers as data redundancy.  

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