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julsineya [31]
3 years ago
6

Ramble Manufacturing manufactures a product with a direct labor quantity standard of 2 hours per unit. The company’s standard di

rect labor rate is $36 per hour. During March, the company paid $153,720 for 4,200 hours of direct labor. If 2,000 units were produced, what was the company’s direct labor price variance for March?
Business
1 answer:
Monica [59]3 years ago
4 0

Answer:

rate variance  $(2,520.00)

Explanation:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate  $36.00

actual rate  $36.60  (153,720/4,200)

actual hours 4,200

difference  $(0.60)

rate variance  $(2,520.00)

The difference between standard and actual is negative, so the variace is unfavorable.

<u>Note for terminology:</u>

Because the employee are giving their time for the company it is a better term to refer as rate variance.

Because the employee are not purchased like inventory.

They offer their working capacity at a given rate.

It is better to call this variance rate variance instead of price variance.

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7 0
2 years ago
Briefly explain how a poor country might benefit from foreign portfolio investment or foreign direct investment.
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3 0
2 years ago
The following data are from the accounting records of Kain Company: Net income $40,000 Depreciation expense 8,000 Decrease in ac
Arada [10]

Answer:

d. $44,700

Explanation:

The preparation of the Cash Flows from Operating Activities - Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $40,000

Add : Depreciation expense $8,000

Less: Decrease in accounts payable -$1,800

Add: Decrease in merchandise inventory $2,500

Less:  Increase in accounts receivable -$4,000

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3 years ago
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givi [52]

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6 0
3 years ago
Winslow enterprises has total assets of $11,700, net working capital of $1,400, owner's equity of $5,000 and long-term debt of $
Talja [164]

I guess the correct option is letter C.

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7 0
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