Answer: continuous production process
Explanation: In simple words, it refers to a production process in which the organisation has to keep doing the production due to the potential loss of of degradation of the raw materials or any other such factors.
In the given case, the company is able to produce efficiently only if they produce in large quantities.
Hence they should indulge in continuous production process.
Answer:
If the company produces the units, it will save $4.
Explanation:
First, we need to calculate the relevant cost of making the units in-house. <u>We will consider only the incremental overhead cost:</u>
Make in-house:
Direct material= 8
Direct labor= 24
Avoidable Overhead= 40*0.6= 24
Total cost= $56
Buying:
Total cost= $60
If the company produces the units, it will save $4.
Answer:
12.93%
Explanation:
Given that the amount of 300 is invested for 3 years, while the amount of 100 is invested for 2 years and 100 is invested for 1 year.
also amount accumulated in three years = 800
Applying the formula to find the future value we get
300(1+r)^3 + 200(1+r)^2 + 100(1+r) = 800
which can be further simplified to
300r^3+1100r^2+1400r+600=800
where, r is the effective rate of interest which we have to find out
The above equation is cubic in r, so to solve this we can use equation solver. When we put this equation in equation solver we get
r = 0.12926
r ≅ 0.1293
Therefore, effective rate of interest = 12.93%
Answer:
Following is given the detailed solution to the question given.
I hope it will help you a lot!
Explanation:
Answer:
Direct labor time (efficiency) variance= $4,375 unfavorable
Explanation:
Giving the following information:
Standard
Direct labor...........................................1.4 hours at $12.50 per hour
Direct labor-hours worked: 5,600 hours for $67,200.
units produced= 3,750
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
standard quantity= 1.4*3,750= 5,250
Direct labor time (efficiency) variance= (5,250 - 5,600)*12.5
Direct labor time (efficiency) variance= $4,375 unfavorable
