Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
<u>To calculate the variable overhead spending variance, we need to use the following formula:</u>
<u></u>
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
Answer:
a. Variable, $85; absorption, $105.
Explanation:
The options that correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing is:
i. Variable costing = Variable manufacturing overhead
Variable costing = $85
ii. Absorption costing = Variable manufacturing overhead + Fixed manufacturing overhead
Absorption costing = $85 + $20
Absorption costing = $105
Answer:
$134,546
Explanation:
Calculation to determine the projected operating cash flow for this project
Projected operating cash flow=
{[820 × ($719 − 435)] + [(1,040 − 1,120) × ($369 − 228)] − $23,100} × {1 − .34} + {$10,400 × .34}
Projected operating cash flow={[820 × $284)] + [$80 × $141] − $23,100} × {.66} + {$3,436}
Projected operating cash flow= $134,546
Therefore the projected operating cash flow for this project is $134,546
Answer:
COGS 3807 debit
FG 7896 debit
WIP 2397 debit
Factory Overhead 14,100 credit
--to record the underapplication of overhead--
Explanation:
overhead rate:
$515,000 overhead / 515,000 labor cost = $1
each labor cost generates a dollar of overhead.
221,400 x 1 = 221,400 overhead in COGS
459,200 x 1 = 459,200 overhead in Finished Goods
139,400 x 1 = 139,400 overhead in WIP inventory
Total applied 820,000
Actual 805,900
Underapplied 14,100
Now we weight each concept and determiante the portion underapplocated in each concept
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Answer: Differentiating
Explanation:
Sprout company as described in the question are making use of product differentiation to ensure parents and children consumption needs are met. Product differentiation in marketing occurs when a company distinguishes their products to meet the needs of the different types of consumer groups available in their target market.
