1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
skad [1K]
3 years ago
6

Saturn Industries purchased and consumed 64,000 gallons of direct material that was used in the production of 17,000 finished un

its of product. According to engineering specifications, each finished unit had a manufacturing standard of four gallons. If a review of Saturn's accounting records at the end of the period disclosed a material price variance of $6,400U and a material quantity variance of $2,800F, what is the actual price paid for a gallon of direct material
Business
1 answer:
Nikitich [7]3 years ago
5 0

Answer:

The actual price = $1.08

Explanation:

The standard material price can be worked out as follows:

<em>Step 1: Work out the standard price of material  using the material usage variance</em>

Standard price = Material usage variance/(standard quantity of material - actual quantity)

Standard quantity of material = standard qty per unit × actual production

                                              = 4 × 17,000 =68,000

Standard price =  2,800/(68,000-64,000)= $0.7

<em>Step 2 : Work out the Actual material price using the material price variance</em>

Material price variance = (Standard price - Actual price )× Actual quantity of material

6,400 =  (y - 0.7) ×  17,000

6400 = 17,000y  - 11,900

17,000 y = 6,400 + 11,900

y = 18,300/17,000= 1.08

The actual price = $1.08

You might be interested in
Cushenberry Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par f
Eduardwww [97]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Sold land (cost $12,000) for $15,000.

Dr Cash                  15,000

Cr Land                                          12,000

Cr Gain on Sale                             3,000

Increase investing cash flows by 15,000. and 3000 gain will be deducted from operating activities

Issued common stock

Dr Cash                                            20,000

Cr Common Stock                                        20,000

Increase financing cash flows by 20,000

Recorded depreciation on buildings for $17,000.

Dr Depreciation Expense             17,000

Cr Accumulated Depreciation                      17,000

This will not affect cash flow.

Paid salaries of $9,000.

Dr Salaries Expense                     9,000

Cr Cash                                                          9,000

Decrease operating activities cash flow by $9,000.

Issued 1,000 shares of $1 par value common stock for equipment

Dr Equipment                                                8,000

Cr Additional paid-in capital Common Stock            7,000

Cr Common Stock                                                          1,000

It doesn't  involve any cash however affects the company financial position so it will be recorded in schedule of non cash financing and investing activities

Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

Dr Cash                                         1,200

Dr Accumulated Depreciation    7,000

Dr Loss on Disposal                     1,800

Cr Equipment                                                        10,000

There would be an increased cash flow of $1,200 under investing activities.

3 0
2 years ago
A common cost that should not be assigned to a particular product on a segmented income statement is:
Ratling [72]

Answer:

The correct answer to the following question is option B) the salary of the corporation president.

Explanation:

In the given question , all the options except option (B) , would be assigned to a particular product , while segmenting on a income statement. A product advertising cost which a company incurred while promoting the product, the direct material cost which a company while in the production of project and a production managers salary would also be included in the product cost. A corporations president who is in the higher level of management in the company, is responsible for making decisions regarding company's vision , strategy development , public relations etc , his or her salary would not be included in product cost.

6 0
3 years ago
Value is the perception by consumers that a band provides satisfaction greater than the cost incurred to acquire the product or
gtnhenbr [62]

Answer:

The correct answer is True.

Explanation:

The answer is not very simple to give; However, some experts in the field say that most people base their purchase decisions on "their perceptions about the value that different products or services provide"; which, overcomes the barrier of the lowest price or higher quality.

For this reason, today it has been widely reported that successful companies do not deliver products in exchange for a profit, but rather: Value in exchange for a profit.

7 0
3 years ago
What happens to your tax liability with proper financial planning?
Murljashka [212]
<span>You can estimate your tax liability through proper financial planning.</span>
7 0
3 years ago
Read 2 more answers
You are working at a practice that has a very busy daily schedule and needs to standardize the times when statements are handled
Ivan

Answer: Cycle Billing

Explanation:

Cycle billing refers to a billing practice where the individual customer is billed on a certain schedule based on the day you started paying or the day the contract kicked in. For instance, your cellular network provider billing you on the same day every month.

This ensures that not all customers are billed on the same day which will reduce the workload at the practice which already has a busy schedule. Rather with customers being billed on different days, the workload decreases.

Also it will then be known for certain which dates one can expect payments as well as when statements will be handled.

7 0
2 years ago
Other questions:
  • Mark the boxes that are true. the federal communications commission regulates radio and television to the extent of licensing st
    14·1 answer
  • The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $6.2 million, and the 2018 balance sheet showed l
    11·1 answer
  • Which task can be completed using the Help interface?
    10·1 answer
  • "A market maker that compensates a retail member firm for sending its customer orders to that market maker is:"
    15·1 answer
  • Allison buys equipment and pays cash of $50,000, signs a note of $10,000 and assumes a liability on the property for $3,000. In
    14·1 answer
  • All of the following are disadvantages of fair value use except aparability between companies may be impacted by different fair
    6·1 answer
  • I. Two countries produce the same goods for the same opportinity cost
    5·2 answers
  • Analyze the effectiveness of Postbellum policies by explaining if Reconstruction succeeded or failed in the areas of Economics –
    13·1 answer
  • Identify and explain the components of management compensation and the tradeoffs that compensation designers make.
    11·1 answer
  • A monopolist has market power because it Group of answer choices none of the Answers are Correct. Faces a downward-sloping deman
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!