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Tom [10]
3 years ago
15

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni

t of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.50 pounds $ 2.40 per pound $ 18.00
Direct labor 0.80 hours $ 7.00 per hour $ 5.60

During the most recent month, the following activity was recorded:
13,250.00 pounds of material were purchased at a cost of $2.20 per pound.
All of the material purchased was used to produce 1,500 units of Zoom.
1,000 hours of direct labor time were recorded at a total labor cost of $9,000.

Compute the materials price and quantity variances for the month.
Compute the labor rate and efficiency variances for the month.
Business
1 answer:
noname [10]3 years ago
7 0

Answer:

<u>DM variances:</u>

Price 2650

Quantity -4,800

<u>Labor Variances:</u>

Rate:-2,000

Efficiency 1400

Explanation:

<u>DM variances:</u>

Price

(std - actual) x actual quantity

(2.4 - 2.2) x 13,250 = 2,650

Quantity

(standard quantity - actual quantity) x std price

(7.5x1,500 - 13,250) x 2.4 = -4,800

<u>Labor Variances:</u>

Rate:

(std rate - actual rate) x actual hours

(7 - 9) x 1,000 = -2,000

actual rate = actual cost/actual hours = 9,000/1,000 = 9

Efficiency

(std hours - actual hours) x std rate

(1,500 x 0.8 - 1,000) x 7 = 1400

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alisha [4.7K]

Answer: a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs.

Explanation:

When the cost of production report is being used to analyze change in direct materials cost per equivalent unit when compared to the conversion cost per equivalent unit, we should note that an investigation may end up showing that the fluctuation in the the direct materials costs which then brings about an increase or a decrease.

Therefore, the correct option is A "may increase while conversion costs decrease because the two are separately calculated and depend on separate costs".

5 0
3 years ago
Ian participates in a 401(k) plan at work. For every $1 Ian contributes to the plan, his employer adds 50 cents. Employer contri
Inessa [10]

Answer: $5,150

Explanation:using the information given above,

For every $1 contributed by the employee, employer adds 50cent.

Employer contribution ends after employee contributes $2500 to the 401(k) plan.

Last year:

Ian's weekly contribution = $75

Number of weeks in a year = 52

Ian's total contribution ($75 × 52) = $3,900

Ian's Employer's total contribution:

$0.5 × $2500 = $1,250

Therefore total contribution last year :

$3900 + $1250 = $5,150

6 0
3 years ago
Your insurance company can cancel your policy after 60 days for? a. a religious conversion b. being involved in a collision c. f
gregori [183]

Answer:

C)Failing to make payments

<h3>What is failure to make payments?</h3>
  • Default is the failure to make required interest or principal repayments on a debt, whether that debt is a loan or security.
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6 0
2 years ago
Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering
ASHA 777 [7]

Answer and Explanation:

The computations are shown below:

1. For annual implicit cost

= Earning annual salary + earned annual interest

= $80,000 + $500

= $80,500

2. For Annual accounting cost

= Explicit cost

= Direct expenses

= Office rent + rent of equipment + supplies + utilities + salary of a book keeper

= $15,000 + $3,000 + $1,000 + $1,200 + $35,000

= $55,200

3. For economic cost

= Accounting cost + implicit cost

= $55,200 + $80,500

= $135,700

4. For revenue

= Accounting profit + profit

= $55,200 + $50,000

= $105,200

5. For revenue

= Economic cost + profit

= $135,700 + $50,000

= $185,700

8 0
3 years ago
producers often make minor changes in products and advertise them as new and improved. Why do they take this action?
aliya0001 [1]

Answer:

To combat decreasing marginal utility.

Explanation:

7 0
3 years ago
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