At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $300 and petty cash of
1 answer:
You might be interested in
Answer:
Quantity discounts can be taken advantage of for large lot sizes.
Explanation:
The EOQ model assumptions:
the order of one item does not intervene with the other.
The order will arrive without delay and with a specific amount of goods.
no losses or damage in transit
The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:
Its use: Demand of the good
cost of Setup, or ordering cost.
and Holding cost, the cost of keeping the inventory
There is no variable to account for discounts for order size in this method
Answer:
$429.60 Favorable
Explanation:
Provided information,
Standard Hours for each product = 3 hours
Standard Cost per hour = $14.00
Actual hours used = 198
Actual output = 80 connectors
Standard hours for actual output = 80 3 = 240 hours
Actual Rate = $14.80 per hour
Direct labor cost variance = Standard Cost - Actual Cost
Standard Cost = Standard hours Standard Rae
= 240 $14 = $3,360
Actual Cost = 198 $14.80 = $2,930.40
Variance = $3,360 - $2,930.40 = $429.60
Since actual cost is less than standard variance is favorable.
$429.60 Favorable