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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

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Cleveland Corporation acquired a machine for $42,000 and has recorded depreciation for two years using the straight line method
dsp73

Answer:

The book value of the machine at the end of year 2 is $35,000

Explanation:

Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.

Depreciation per year = ( Cost of Machine - Residual Value ) / Useful life

Depreciation per year = ( $42,000 - $7,000 ) / 10 years

Depreciation per year = $3,500 per year

Book value of machine at the end of year 2 = $42,000 - ( $3,500 x 2 )

Book value of machine at the end of year 2 = $42,000 - $7,000

Book value of machine at the end of year 2 = $35,000

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3 years ago
An investor purchases a stock for $39 and a put for $0.55 with a strike price of $32. The investor sells a call for $0.55 with a
Archy [21]

Answer:

The maximum profit and loss for this position is $3 and -$7 respectively

Explanation:

The computations are shown below:

For maximum profit:

= Strike price at the sale - stock price + put price - call price

= $42 - $39 + $0.55 - $0.55

= $3

For maximum loss:

= Strike price at purchase - stock price + put price - call price

= $32 - $39 + $0.55 - $0.55

= -$7

Simply we take the difference between the strike price ,and the stock price and after that the put and call price are adjusted

3 0
3 years ago
In the acronym SMART, what does the “M” stand for?
elena-14-01-66 [18.8K]

Answer:

measurable

Explanation:

defining a hypothesis

7 0
3 years ago
Read 2 more answers
A firm’s management analyzes financial statement’s so that: a. they can get feedback on their investing, financing, and working
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Answer:

d. a and b

Explanation:

A firm’s management analyzes financial statement’s so that:

Evaluating company's performance, by analyzing the financial statements in respect of various areas of financing, investing and operating activities, and then comparing the performance with past records and industries of same category.

Further the firm's management is responsible to take decision of dividend, and return to be paid to equity and various other stakeholders, thus both options a and b are correct.

Correct answer

d. a and b

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3 years ago
Discuss the pros and cons of four performance appraisal tools​
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Answer:

Pros and cons are for every method listed below. A person can only see his strength and power during self assessment and he may ignore all his mistakes as it can be his over confidence in himself. Graphic rating may be disappointing as many employees can get same rating and there will not be any difference among them in the pay rise.

Explanation:

There are four major performance appraisal tools

1. Self assessment

2. Graphic Rating

3. Behavioral Checklist

4. 360 degree feedback

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