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Maru [420]
3 years ago
6

If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which v

ariance may be affected?A) Materials price varianceB) Materials quantity varianceC) Both of the variances may be affectedD) Neither of the variances may be affected
Business
1 answer:
adelina 88 [10]3 years ago
8 0

Answer:

B) Materials quantity variance

Explanation:

Provided that actual and standard price per raw material is same, therefore the price variance will be 0 as there is no difference.

Also provided that actual quantity is more than budgeted, therefore there will be an impact on material quantity variance.

As Material Quantity Variance = (Standard Quantity - Actual Quantity) \times Standard Price

Since here actual quantity will be more than standard, there will be an unfavorable variance.

Thus correct option is,

B) Materials quantity variance

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A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually
skelet666 [1.2K]

Answer:

a) actual dollar = $60

b) Constant dollar of the 15th payment = $38.710

Explanation:

Facts from the question:

The Face value of the bond = $1,000

Nominal Interest rate = 12% and it compounded annually

General inflation rate = 6%

The question: Determine the 15th interest payment on the bond.

Step 1: The coupon for the amount of semi annual payment is as follows:

Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond

= (0.12/2) x 1000

= $60 -= Actual dollar amount

Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.

To calculate this=

Constant dollar amount of the 15th interest payment

= Actual dollar amount (above) / (1 + inflation rate)∧n

where n= the number of years = 7.5 years

= $60 / (1 + 0.06) ∧7.5

= $60/1.55

= $38.710

This means the constant dollar amount on that 15th payment = $38.710

3 0
3 years ago
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 315,000 Beginning m
prohojiy [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Q=1000

Sales= $ 315,000

Beginning merchandise inventory= $21,000

Purchases= $210,000

Ending merchandise inventory= $10,500

Fixed selling expense= $ ?

Fixed administrative expense= $12,600

Variable selling expense= $15,750

Variable administrative expense= $ ?

Contribution margin= $63,000

Net operating income= $18,900

First, we have to calculate the variable administrative expense:

Contribution margin= sales - cost of goods sold - variable selling expense - variable administrative expense

63000= 315000 - (beginning inventory + purchase - ending inventory) - 15750 - variable administrative expense

variable administrative expense= 315000 - (21000+210000-10500)-15750-63000

variable administrative expense= $15750

Now, we can calculate the fixed selling expense:

Net operating income= contribution margin - fixed selling expense - fixed administrative expense

18900= 63000 - fixed selling expense - 12600

fixed selling expense= 63000-12600-18900

fixed selling expense= 31500

A)Sales= 315,000

Variable costs:

Cost of good sold= 220,500

Variable selling expense= 15,750

Variable administrative expense= 15,750

Total variable cost= 252,000

Contribution margin=$63000

Fixed costs:

Fixed selling expense= 31,500

Fixed administrative expense= 12,600

Total fixed cost= $44,100

Net profit= $18,900

B) Revenue= 315,000

COGS= 220,500 (-)

Gross porfit= 94500

Selling expense= (15750+31500)= 47,250

Administrative expense= (15750+12600)= 28,350

EBITDA= 18,900

C) Selling price per unit= 315,000/1000= $315

D) Variable cost per unit= total variable cost/q= 252000/1000= $252

E) Contribution margin per unit= 63000/1000= $63

F) The contribution format income statement, because you can easily analyze the effect of each unit in the cost structure and net income.

7 0
3 years ago
Derby Inc. manufactures a product which contains a small part. The company has always purchased this motor from a supplier for $
skad [1K]

Answer:

Income will be higher by $16 per unit

Explanation:

As per the data given in the question,

Direct material = $38

Direct labor = $50

Overhead = $21

Total variable cost = $38 + $50 + $21

= $109

Cost of supply = $125

Income increased per unit = cost of supply - total variable cost  

=$125 - $109

= $16

Because the cost of inhouse is lower therefore net income will be more by $16 per unit

8 0
3 years ago
Brush Industries reports the following information for May: Sales $ 980,000 Fixed cost of goods sold 116,000 Variable cost of go
Roman55 [17]

Answer:

Net operating income= 341,000

Explanation:

We need to use the following structure:

Gross profit= sales - cost of goods sold

Net operating income= Gross profit - other expenses (variable and fixed)

<u>Under the absorption costing method, the cost of goods sold incorporates the fixed overhead.</u>

Sales= 980,000

COGS= (116,000 + 266,000)= (382,000)

Gross profit= 598,000

Fixed selling and administrative costs= (116,000)

Variable selling and administrative costs= (141,000)

Net operating income= 341,000

8 0
3 years ago
When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day.
Elanso [62]

Answer:

The answer is -0.5

Explanation:

I will attach a jpg file explaining the procedure used in obtaining the answer. I used the midpoint formula to calculate for percentage change in Quantity and Price, before calculating the Price-elasticity coefficient.

7 0
3 years ago
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