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prohojiy [21]
2 years ago
11

Production and sales estimates for April for Ibis Co. are as follows: Estimated inventory (units), April 1 9,000 Desired invento

ry (units), April 30 8,000 Expected sales volume (units): Territory A 3,500 Territory B 4,750 Territory C 4,250 Unit sales price $20 The budgeted total sales for April is a.$230,000 b.$250,000 c.$270,000 d.$200,000
Business
1 answer:
ratelena [41]2 years ago
7 0

Answer:

b.$250,000

Explanation:

The computation of the budgeted total sales is shown below:

= (Expected sales volume in territory A + Expected sales volume in territory B + Expected sales volume in territory C)

= (3,500 + 4,750 + 4,250) × $20

= $250,000

hence, the budgeted total sales for April month is $250,000

Therefore, the option b is correct

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2 years ago
The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds
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$2,820 favorable

Calculation to determine direct materials quantity variance

Using this formula:

Direct materials price variance = (Actual materials cost per lb. - Standard materials cost per lb.) × Actual quantity lb

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Direct materials price variance = (-$0.60) × 4,700 lbs.

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Therefore the direct materials price variance is $2,820 favorable.

Direct material costs:

are the costs of raw materials or parts that go directly into producing products. For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys.

Why is direct materials important?

Direct materials is an important concept in throughput analysis, where throughput is the revenue generated by a product sale, less all totally variable costs. In most situations, the only totally variable costs associated with a product are its direct materials.

What do you mean by actual cost?

In accounting, Actual Cost refers to the amount of money that was paid to acquire a product or asset. This could be the historical, past, or present-day cost of the product

What do you mean by standard cost?

A standard cost is the budgeted cost of a regular manufacturing process against which actual costs are compared. Of course, if a new product, service, or process is to be carried out, the initial standard costs will have to be estimated.

Learn more about direct costs:

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6 0
1 year ago
Is it possible to make homogeneous shopping product into a heterogeneous shopping product? think about flat-panel televisions an
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The commission of presidential debates was organized in the year 1987 to assure that the debates, as a constant part of every general election. The commission of presidential debate advocate and present debates for the United States presidential and vice-presidential candidate.

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