Answer:
The correct answer is c) 300,000
Explanation:
In this question machine hour is limiting factor. So in order to make most lucrative mix we will have to find which product give more contribution per limiting factor. Detail calculations are given below.
Contribution per Limiting factor (machine hour)
Executive = 60/2 = 30 per machine hour
Deluxe = 250/10 = 25 per machine hour
So
It is more profitable to produce executive chair
As demand for chairs are unlimited so company will use all its machine hour to produce executive chairs.
Contribution = 10,000 * 30 = 300,000 dollars.
The type of share owns by Mark is COMMON STOCK. Common stock is a security that represent ownership in a corporation.Owners of common stock have the right to elect board of directors, to vote on corporate policy and to receive in form of dividends part of the corporation's profits.
Answer:
The journal entry to record the purchase raw material would include a debit to raw material of $79000 and credit to Raw materials of $109000..
Explanation:
Since the raw material is coming into the company, we have debit raw material and the opening balance is already there in the books of the business. hence raw materials increases.
Answer:
a. They must be an integral part of the finished product and be a significant portion of the total product cost.
Explanation:
The Direct material is supply which is consumed during the production of a product. The direct material should be an integral part in the finished good. Consumables are not direct material. To become direct material the raw supplies should be a significant portion of the total cost. There is no direct material in a service business. The finished product should contain the direct material and the material must be an integral part of the final product.
Answer:
Direct material price variance= $13,800 unfavorable
Explanation:
Giving the following information:
Simpleton, Inc. budgeted a material cost of $10 per lb.
Actual:
2,300 lbs at $16 per lb.
<u>To calculate the direct material price variance, we need to use the following formula:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (10 - 16)*2,300
Direct material price variance= $13,800 unfavorable
