Answer:
Cost savings when transfer are made = $0
Explanation:
In the question it was given that Quail is operating at capacity, then the Minimum and Maximum transfer price would be market price = $15.80
Cost savings when transfer are made = No of unit Marlin purchase*(Maximum transfer price - Minimum transfer price)
Cost savings when transfer are made = 195,000 unit * ($15.80 - $15.80)
Cost savings when transfer are made = $3,081,000 - $3,081,000
Cost savings when transfer are made = $0
Answer: Option C
Explanation: In simple words, revenue variance refers to the difference between the revenue one expects to earn as per the budget made for a specified period of time and the revenue it actually earned in that time.
Organisations calculate revenue variance to identify the reasons they are not performing well or the qualities they are performing more than expected.
This measure helps organisation in decision making as to whether they should make changes in their process, and if so then wheat changes, or should remain as they are.
Answer:
$ 2,829,276
Explanation:
The budgeted direct labour cost is going to be based on the budgeted production units.
Production budget = sales budget + closing inventory -opening inventory
Production budget = 46,000 - 140 + 580 = 45,560
Labour budget = Production budget× hours per unit
= 45,560× 2.7 hrs × $23
= $ 2,829,276
At the end of given period the gross profit method is required to estimate inventory.The valuation become invalid when the following are not available.the value for the beginning of inventory,records of purchase made, the total sale during the period and the gross profit margin.
