- A negative monthly balance indicates that:

What is the prime reason that Jenny's discretionary income is more volatile than her salary?

sweet [91]

Answer:

c. Her mortgage payments and necessities are fixed

Explanation:

Discretionary income is the remaining income after being paid out for all fixed expenses (i.e. Discretionary income = Salary - Mortgage - Income tax etc). The primary reason for variability in it is due to the mortgage payment and fixed expenses from the basic salary received.

So, option c is correct while other options are incorrect as tax does not affect as well as cost of living

7 0

3 years ago

. In the context of sourcing, multiple suppliers: a. often provide the ability to form close partnerships. b. often provide econ

Galina-37 [17]

Answer:

c. lower the risk of supply disruption

Explanation:

Having multiple suppliers is always a good sourcing strategy, as it minimizes the risk of supply disruption. If one of the suppliers fails to maintain the contract due to various reasons (bad business operating), the risk is dispersed among a few suppliers, so there is the contingency principle applied.

This way, the supply chain never gets disrupted.

6 0

3 years ago

Momentum Rollerblades has three product lines: D, E, and F. The following information is available:

Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

D E F

Sales revenue $90,000 $40,000 $30,000

Variable costs ($40,000) ($10,000) ($10,000)

Contribution margin $50,000 $30,000 $20,000

Fixed costs ($10,000) ($5,000) ($25,000)

Operating income (loss) $40,000 $25,000 ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0

3 years ago

Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours

steposvetlana [31]

Before information shows is the correct and complete question.

The Lopez Company use a standard costing in its manufacturing plant for the auto part. The standard cost of particular auto part based on a denominator level of a 4.000 output unit per year. included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour.

Actual output produced was 4.400 units.

Variable manufacturing overhead incurred was $245.000.

Fixed manufacturing overhead incurred was $373.000.

Actual machine-hours were 28.400.

Prepare the analysis of all variable manufacturing overhead and fixed manufacturing overhead variances.

Additional diagram attached to this question is displayed in the first image below.

Answer:

Explanation:

By using a columnar method, the analysis of all the variance & fixed manufacturing overhead varaince can be computed as follows:

Variable manufacturing overhead analysis:

Actual cost Incurred: ║ Actual input × Budgeted ║ Allocated: Budgeted

Actual input × Actual rate Input for actual output

rate × Budgeted rate

245000 28400×$8.00 = 227200 (4400×6hrs×$8)

= 211,200

17800 U 16800 U

Spending Variance Efficiency Variance

33800 U

Flexible Budget Variance

Hence;

The spending Variance = $17,800 U

Efficiency Variance = $16,000 U

Flexible Budget Varaince = $33800 U

where; F = Favourable & U = Unfavourable

For the fixed Manufacturing Overhead:

Actual cost Incurred: ║ Flexible Budget Lump ║ Allocated: Budgeted

Actual input × Actual sum regardless of the Input for actual output

rate output level × Budgeted rate

373000 4000×6hrs×15 = 360000 (4400×6hrs×$15)

= 396000

13000 U 36000 F

Spending Variance/ Production-Volume

Flexible budgeted variance Variance

23000 F

Over allocated fixed

Overhead

Hence;

The spending Variance = $13000 U

The production Volume Variance = $36,000 F

Over allocated fixed overhead = $23000 F

where; F = Favourable & U = Unfavourable

NOTE: To have a better view of the above computation in a table format, refer to the second and the third diagram in the image below.

8 0

3 years ago

Other than the economic indicators discussed in this chapter, what are some other data items that might be used to measure busin

astra-53 [7]

That's a hard one sorry

5 0

4 years ago