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krok68 [10]
2 years ago
8

Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by

selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Business
1 answer:
otez555 [7]2 years ago
3 0

Question Completion:

A manufactured product has the following information for June.

                                 Standard                        Actual

Direct materials     6 lbs. at $8 per lb.       48,500 lbs. at $8.10 per lb.

Direct labor            2 hrs. at $16 per hr.     15,700 hrs. at $16.50 per hr.

Overhead               2 hrs. at $12 per hr.     $198,000

Units manufactured                                    8,000

Answer:

Direct materials price variance = $4,850 U

Direct materials quantity variance = $4,000 U

Explanation:

a) Data and Calculations:

                                                 Actual            Standard

Direct materials price per lbs  $8.10                 $8.00

Direct labor rate per hour      $16.50              $16.00

Quantity:

Direct materials                      48,500         48,000 (6 * 8,000)

Direct labor hours                   15,700         16,000 (2 * 8,000)

Direct materials price variance = SP - AP * AQ

= $8 - $8.10 * 48,500

= $0.10 * 48,500

= $4,850 U

Direct materials quantity variance = SQ - AQ * SP

= 48,000 - 48,500 * $8

= $4,000 U

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ira [324]

Answer:

Revenue for Smart Suiting is $521,306.

Explanation:

Revenue is the business operational source of finance. IFRS has made standards for revenue recognition which need to be followed by all organizations. The revenue should be calculated after deducting trade and cash discounts. If there is any sales return it should be deducted from the gross revenue figure. Net revenue should be reported in the Income Statement.

3 0
3 years ago
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in uni
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Answer:

510,000 units

Explanation:

Note: The data in the questions are merged together and they are first separated before answering the question as follows:

                                  Beginning Inventory        Ending Inventory

Raw material                      52,000                            62,000

Finished goods                  92,000                           62,000

The explanation to the answer is as follows:

Beginning inventory of finished goods + Units of finished goods manufactured = Ending inventory of finished goods  + Units of finished goods sold

Units of finished goods manufactured = Ending inventory of finished goods  + Units of finished goods sold  - Beginning inventory of finished goods

Therefore, we have:

Units of finished goods manufactured = 62,000 + 540,000 - 92,000 = 510,000

7 0
3 years ago
A registered representative suggests and then implements a strategy in a client's portfolio. This strategy involves the RR comin
UNO [17]

Answer:

(C) The RR is using a form of asset allocation for the client.

Explanation:

Given that Asset allocation is a term that describes the undertaking of an investment technique. This technique tries to offset risk with reward by diversifying the proportion of each asset in an investment portfolio based on the investor's preference, which is influenced by risk tolerance, and investment period.

Hence, in this situation, the right answer is option C: The RR is using a form of asset allocation for the client.

4 0
3 years ago
On July 10, 2020, Pronghorn Music sold CDs to retailers on account and recorded sales revenue of $635,000 (cost $508,000). Prong
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Answer:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

10/31/2020 No entries are needed as the return period has expired.

Explanation:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

($508,000 / $635,000) x $82,700= $66,160

10/31/2020 No entries are needed as the return period has expired.

8 0
3 years ago
Gruber Corp. pays a constant $8.75 dividend on its stock. The company will maintain this dividend for the next 10 years and will
MA_775_DIABLO [31]

Answer:

72,91

Explanation:

the key to answer this question is to see that we can calculate the present value as a series of future payments valuated today, so there are two stages, the first one i going until 10 years and from ther is to infinity, so the present value can be solved as:

PV =P*\frac{1-(1+i)^{-n} }{i}+P*\frac{1}{i}*(1+i)^{-n}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem.

keep in mind that P*\frac{1}{i}*(1+i)^{-n} is the formula for calculating a perpeuity, it means the present value of a infinite future payments but look carefully at the expresion (1+i)^{-n}  it means we are calculating a perpeuity which is located in the future and we compute it as money of today, so we have:

PV =8,75*\frac{1-(1+0.12)^{-10} }{0.12}+8,75*\frac{1}{0.12}*(1+0.12)^{-10}

PV =72,91

3 0
3 years ago
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