Answer: $17,000
Explanation:
Labour efficiency variance = Standard rate * (Standard hours - Actual hours )
Standard hours:
= Standard labor-hours allowed per unit * Number of units produced in period
= 3 * 15,000
= 45,000 hours
Labor efficiency variance = 17 * (45,000 - 44,000)
= $17,000 Favorable
<em>Favorable because the standard amount is higher than the actual amount. </em>
Companies that use job-order costing make unique products.
<h3>What is job-order costing?</h3>
Job order costing can be defined as a costing method that is used to calculate the cost of each unique item produce or the cost of producing each unique product that is different from the ones in the market.
Example companies can make use of job-order costing when they produce a unique bag or shoe for their customer.
Since this product they produce for this customer is unique, the manufacturer can tend to use job order costing to determine the price or selling price they will to charge the customer.
A company can use a job order cost method if it produce products with unique characteristics.
Inconclusion companies that use job-order costing make unique products.
Learn more about job-order costing here: brainly.com/question/24516871
The best answer is:
C) <span>a choice that must be made due to scarcity.
A tradeoff occurs when you must choose between two or more things, selecting the best option given the constraints. Choosing what to spend your allowance on, for example, is involves a trade-off that you must make due to the scarcity of your allowance money (you don't have unlimited money). D is a tempting answer, but it does not define trade-off as well as C. </span>
Answer:
$1,498.86
Explanation:
Given that;
Packing of crates per month(u) = 779
Annual carrying cost of 39% of the purchase price per crate
Ordering cost (S) = $27
D = 779 × 12 = $9,348 crates per year
H = 0.39P
H = 0.39 × $12
H = $4.68 crates per year
Total ordering cost = D/Q × S
= ( $9,348 / 779 ) × $27
= $324
Total Holding cost = Q / 2 × H
= ( 779 / 2 ) × $4.68
= $1,822.86
Annual savings = Total holding cost - Total ordering cost
= $1,822.86 - $324
= $1,498.86
The firm would be saving $1,498.86 annually.
