Explanation:
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Answer:
Total overhead cost variance $
Standard fixed overhead cost ($9 x 45,100 hrs) 405,900
Less: Actual fixed overhead cost <u>411,000 </u>
Total overhead cost variance <u> 5,100 (A)</u>
Explanation:
Total overhead variance is the difference between standard fixed overhead cost and actual fixed overhead cost. Standard fixed overhead cost is overhead rate multiplied by actual direct labour hours. Overhead rate is the total of variable overhead and fixed overhead rate ($8 + $1 = $9).
Answer:
5. $232,000.
Explanation:
The computation of the total conversion costs transferred out of the Canning Department equals to
= Number of units completed and transferred out × Cost per equivalent unit
= 80,000 units × $2.90
= $232,000
In order to find out the total conversion cost, we simply multiplied the number of units completed and transferred out with the cost per equivalent unit
Regional mortgage rate differentials do exist, depending on supply & demand conditions in the different regions. However, high rates in one region would attract capital from other regions, and the end result would be a diffferential that was just sufficient to cover the costs of causing the transfer. Differentials are more likely in the residential mortgage market than the business loan market, and not at all likely for the large, nationwide firms, which do their borrowing in the lowest-cost money centers thereby quickly equalizing rates for large corporate loans. Interest rates are more competitive, making it easier for small borrowers, and borrowers in rural areas, to obtain lower cost loans
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