Budgeted direct materials quantity
4000 pounds
Actual direct materials quantity
4500 pounds
Direct materials quantity variance
4500-4000=500 pounds ( underapplied)
Answer:
The principle of exception
Explanation:
Principle of exception is also known as Management by Exception. Management by exception (MBE) is a practice where only significant deviation from a planned target are brought to the attention of management. The idea behind it is that management's attention will be focused only on those areas in need of action and thus sparing the management to concentrate on critical activities free from routine activities. When nothing is brought to the notice of management, it is assumed that everything is moving as per plan.
Principle of Exception thus gives employees the responsibility to take decisions and to fulfil their work or projects by themselves. They are encouraged to take decisions and asked to bring up matter to superiors if an unusual situation or deviation in the recorded data appears, which could cause difficulties for the business and can’t be managed by the employee themselves.
Scott is also following this approach. He has given responsibility of managing the production and control defects within tolerable limits to the employees themselves. They are asked to report abnormal matters to Scott which in this case means defect exceeding 200 million.
Therefore, correct answer would be “The principle of exception “
IN THIS CASE, SCOTT IS USING THE PRINCIPLE OF EXCEPTION
Answer:
Explanation:
• Ms. Vello earned $127,200 income this year. Compute her city income tax and determine her average tax rate.
Ms. Vello's tax is calculated as:
= $72,200 × 7%
= $72000 × 0.07
= $5054
Her average tax rate will be:
= $5,054/$127,200
= 3.97%
• Mr. Sui earned $68,900 income this year. Compute his city income tax and determine his average tax rate.
Mr. Sui's tax will be:
= $13,900 × 7%
= $13900 × 0.07
= $973
His average tax rate will be:
= $973/$68,900
= 1.41%
• Does Willford have a proportionate, progressive, or regressive tax rate structure
Willford has a progressive tax rate. This is because as the base rises, the tax rate also increases. The higher the income, then the higher the tax rate will also be.
Answer:
1. decrease, $ 3 million, decrease, $ 15 million
2. TRUE
3. TRUE
Explanation:
1. The reverse requirement is given as r = 0.2
The money multiplier is 
Now when the monetary base is changed by $3 million, then the total money supply will change by 
.
Of the $ 15 mn, the reverse will change by $ 15 mn x 0.2 = $ 3 mn.
If Fed sells the government bond of $ 3 million, then the money supply will reduce and the economy's reverses will decrease by $ 3 million and the money supply will decrease by $ 15 million.
2. TRUE
Now if the bank reduces the reserve ratio but he bank maintains excess reserves, then the money multiplier = 
Therefore, the money multiplier will remain same, it will remain unchanged.
3. TRUE.
Since the money multiplier remains constant, the overall change in money supply will not increase. It remains the same.
Answer:
A) $25,000.
Explanation:
Marina's adjusted basis for her partnership interest at the end of the year = $20,000 (Marina's cash contribution) + $5,000 (Marina's share in the partnership's net taxable income) - $8,000 (distributions received by Marina) + $8,000 (Marina's share in the partnership's recourse liabilities) = $25,000
