Answer:
Total direct material variance= $1,000 favorable
Explanation:
Giving the following information:
Company had a favorable direct materials price variance of $3,000 and an unfavorable direct materials usage variance of $2,000.
<u>To calculate the total direct material variance, we need to use the following formula:</u>
<u></u>
Total direct material variance= price variance +/- quantity variance
Total direct material variance= 3,000 - 2,000
Total direct material variance= $1,000 favorable
Based on the above scenario, the pay structure being exemplified Skill-based pay systems. Skill-based pay systems are pay structures that set pay as indicated by the workers' level of expertise or learning and what they can do. Paying For abilities bodes well at associations where changing innovation expects workers to constantly broaden and extend their insight.
Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
Answer:
inflation rate = 17.5 percent per year ⇒ it will take 4 years to double
inflation rate = 35 percent per year ⇒ it will take 2 years to double
inflation rate = 3.5 percent per year ⇒ it will take 20 years to double
Explanation:
we can use the rule of 70 to determine the amount of time it would take the general price level to double.
the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.
70 / 17.5 = 4 years
70 / 35 = 2 years
70 / 3.5 = 20 years
Answer:
The balance of allowance for doubtful accounts is $ 1,880
Explanation:
Computation of balance in Allowance for Bad Debts
Total credit sales $ 47 comma 000
Estimated bad debts as a % of sales 4 %
Balance of Allowance for Doubtful accounts $ 1,880
The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.
