A union might increase the demand for the labor services of its members by Multiple Choice decreasing the demand for the product
1 answer:
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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
<u>For the fixed Manufacturing Overhead:</u>
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.
Answer:
$8,940
Explanation:
For computing the amount of the gain first we have to need to do the following calculations
a. Net short term gain or loss is shown in the attachment
b. Net long term gain or loss is shown in the attachment
c. Net capital gain arise from these transactions are as follows
= Short term capital gain or loss + Long term capital gain or loss
= -$240 + $9180
= $8,940
d.The whole net capital gain of $8,940 will be taxable at a preferential rate.
