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3 years ago

Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:

Business

1 answer:

kotykmax [81]3 years ago

3 0

Answer:

1. Total hours allowed = 40,000

Actual direct labour hours worked = 52,000.

2. Standard hourly rate = $10

Actual rate = $10.2

3. Actual output= 20,000 units

Explanation:

The variable overhead efficiency variance in hours= variable overhead efficiency variance in Dollar/Variable overhead standard rate

= $24,000/$2= 12,000 hours unfavorable

Let the actual hours be V

Let the standard hours for the actual output achieved be = V

The actual hours worked = 130% of the standard hours allowed

Actual hours =130% × V = 1.3V

1.3V - V= 12,000

V=12000/0.3=40,000

Total hours allowed = 40,000

Actual labour hours= 130%× 40,000=52,000

Total hours allowed = 40,000

Actual direct labour hours worked = 52,000.

Standard labour rate =

Labour effciency variance in Dollar /Labour efficiency variance in hours

= 120,000/12,000=$10

Standard hourly rate = $10

Rate variance = (Actual rate - standard rate)× Actual hours

Let the actual rate be = Y

10,400 = ( Y - 10) × 52,000

10,400= 52000Y- 520,000

Y= (520,000 + 10,400)/52,000=10.2

Actual rate = $10.2

Standard labour hours for actual output = Actual output × standard hours

Let the actual output be = m

40,000 = m × 2

m= 40,000/2= 20,000 units

Actual output= 20,000 units

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Answer:

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3 years ago

GDP is adjusted for inflation bias computed in different years using a common set of fixed base-period prices.

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Answer:

True.

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3 years ago

Green Energy Inc., is a manufacturer of wind turbines. In the annual meeting, the directors are discussing the next year's op

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Answer:

The correct answer is The firm's average cost of production remained unchanged over the last 100 units.

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The minimum efficient scale is called the value of production for which the average long-term cost is minimal and also coincides with the marginal cost.

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The curve of long-term average costs is obtained from the envelope of the infinite possible curves of short-term average costs for different plant sizes, that is, for different levels of capital. From this envelope, a U-shaped average cost curve is obtained, at which minimum, precisely, the minimum efficient scale is found.

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3 years ago

Farmer Joe is planning to purchase a new hog farm. He anticipates making $20,000 the first year, $25,000 the second year and $30

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Answer:

The simple rate of return is 37.5%

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Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:

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3 years ago

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-st

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Answer:

MULTI-STEP

Sales Revenue 96,948.00

Sales commissions (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

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Rent revenue 17,678.00

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Earning Before Taxes 23,050.00

Income Tax (9,518.00)

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Shares 40,550

EPS 0.33

ONE-STEP

Sales Revenue 96,948.00

Sales commissiones (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Rent Revenue 17,678.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

Interest expense (2,308.00)

EBT 23,050.00

Income Tax (9,518.00)

Net Income 13,532.00

Explanation:

The multi-steps calcualte the operating income and the non-operating income (from other activities and interest which aren't directly linked to the main activity of the company) While the one step just calcualte directly through earnings before taxes after solving gross profit.

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3 years ago

Read 2 more answers