Solution
Given :
Standard direct labor hours = 4.6 hours per unit
Standard variable overhead rate = $ 4.60 per hour
Actual direct labor hours worked = 9400
Actual variable overhead incurred = $ 44,940
Number of units of N06C = 2100 units
Therefore, output absorbed, V.OH = SHAO x budget OH/hr
= (2100 units x 4.6 per unit) x $ 4.60 per hour
= $ 44,436
The Input Absorbed V.OH = actual hours x budgeted OH/hour
= 9400 x $ 4.60 per hour
= $ 43,240
Therefore, the variable overhead rate variance is = $ 43,240 - $ 44,436
= $ 1196 (U)
Answer:
marginal cost equals the price
Here are some actions that would enable John to maximize his earning and earn more interest :
- By Selecting an account with high interest rates
Different banks usually used different interest rates. John need to carefully research it and choose the one with higher interest rate
- Leaving his money in the account for a long period of time
- Deposit a larger amount of money since the interest earning are dependent on the deposited amount
<u>Calculations of Net Income for the period (Assuming the Accrual Method of accounting):</u>
It is given that Revenue on account amounted to $4,400. Expenses for the period were $2,300.
The Net income for the period using the Accrual Method of accounting can be calculated with the help of following formula;
Net Income = Sales Revenue – Expenses
= 4400-2300
= 2100
Hence, the net income for the period is <u>$2,100</u>
