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ioda
3 years ago
5

Fact Pattern: Jackson Industries employs a standard cost system in which direct materials inventory is carried at standard cost.

Jackson has established the following standards for the prime costs of one unit of product: Standard Standard Standard Quantity Price Cost Direct materials 5 pounds $ 3.60/pound $18.00 Direct labor 1.25 hours $12.00/hour 15.00 $33.00 During May, Jackson purchased 125,000 pounds of direct materials at a total cost of $475,000. The total factory wages for May were $364,000, 90% of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct materials and 28,000 direct labor hours. Question Jackson’s direct labor usage (efficiency) variance for May is
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer:

Efficiency varaince 6,000 unfavorable.

 

Explanation:

(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance

std  hours          27,500.00 (22.000 units x 1.25 units per hour)

actual hours          28,000.00

std rate                 $          12.00

difference                 -500.00

efficiency variance $  (6,000.00)

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7 0
3 years ago
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Use the following information to determine the break-even point in sales dollars: Unit sales 50,000 Units Dollar sales $ 500,000
Keith_Richards [23]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Unit sales 50,000

Units Dollar sales $ 500,000

Fixed costs $ 204,000

Variable costs $ 187,500

First, we need to calculate the unitary selling price and variable cost:

Unitary Selling price= 500,000/50,000= $10

Unitary variable cost= 187,500/50,000= $3.75

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 204,000/ [(10 - 3.75)/10]= $326,400

6 0
3 years ago
When applying for a loan, the lending institution evaluates a potential borrower's ability to complete repayment on a loan, cash
viktelen [127]

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D. Capacity

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6 0
4 years ago
According to economists, inflation is a. eliminated by the government. b. unavoidable, and therefore something beyond the contro
mote1985 [20]

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7 0
3 years ago
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8 0
3 years ago
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