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3 years ago

The following labor standards have been established for a particular product:

Business

1 answer:

alexandr1967 [171]3 years ago

3 0

Answer:

a. 7400 U

b. 4120 U

Explanation:

A.Calculation to determine the labor rate variance for the month

Using this formula

Labor rate variance=(SR-AR) * AH

Let plug in the formula

Labor rate variance=[20.60-(153,180/7400)]*7400

Labor rate variance=(20.60-20.70)*7400

Labor rate variance=0.1*7400

Labor rate variance=7400 U

Therefore is Labor rate variance 7400 Unfavorable

b. Calculation to determine the labor efficiency variance for the month

Using this formula

Direct Labor Efficiency Variance = (Actual Direct Labor Hours Worked * Standard Labor Rate) - (Units Produced * Standard Direct Labor Hours per Unit * Standard Labor Rate)

Let plug in the formula

Direct Labor Efficiency Variance = (7400 hours x $20.60) - (1500 units x 4.8 hrs* $20.60)

Direct Labor Efficiency Variance = $152,440 - $148,320

Direct Labor Efficiency Variance = $4,120 UnFavorable

Therefore the labor efficiency variance for the month is $4,120 UnFavorable

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The two biggest drawbacks or disadvantages of unrelated diversification are:___________.

lapo4ka [179]

Answer:

c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.

Explanation:

An unrelated diversification can be defined as a situation in which an existing business or company enters or invest in an entirely new business or industry that do not have any similarity whatsoever with its original business or product line. For example, an automobile manufacturing company that decides to acquire or invest in a clothing or shoe business.

Hence, the two biggest drawbacks or disadvantages of unrelated diversification are demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.

Also, the difficulties in successfully managing a collection of unrelated different business and having minimal competitive advantage potential over its rivals in the industry that cross-business strategic fit provides is another disadvantage of unrelated diversification

3 0

3 years ago

Which statement about portfolio diversification is correct?

mario62 [17]

Answer:

C. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate.

Explanation:

Portfolio diversification gives more security to a portfolio, which expected to results in a decreasing rate of total risk.

The portfolio which is diversified carries the co-variance measure of risk. It has the property of reducing the risk as it diversifies the portfolio to a great extent.

It reduces the overall risk by diversifying the assets i.e. stock , bonds, commodities etc.

Hence, the most appropriate answer is option C.

8 0

3 years ago

Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessaâs monthly payments are $1,59

Musya8 [376]

Answer:

Ans. A) $9,314.45

Explanation:

Hi, first we have to bring to present value the monthly payments to be made for 30 years (360 months). In order for this to be useful, we have to convert this annua compounded monthly rate (6.25%) to an effective rate, that is 6.25% / 12 = 0.5208%. Now, when we find this present value, we are going to substract it from the price of the house and that is the value of the down payment. But let´s just go ahead and do it together.

We have to use this formula to bring to present value the $1,595.85 monthly payments, for 30 years (360 months) at a rate of 6.25% (0.5208% monthly).

$PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$

It should look like this

$PresentValue=\frac{1,595.85((1+ 0.005208 )^{360}-1) }{0.005208(1+0.005208)^{360} }$

$Present Value=259,185.55$

Now, let´s go ahead and find the down payment.

$DownPayment=Price-PresentValue$

$DownPayment=268,500-259,185.55= 9,314.45$

So, the answer is a). $9,314.45

Best of luck.

5 0

3 years ago

At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,

polet [3.4K]

Answer:

1. 9.60 per hour

2. $11,129

3. Dr Manufacturing overhead 172500

Cr Lease payable 6800

Cr Accumulated depreciation-Building 19340

Cr Wages payable 90400

Cr Utilities payable 14560

Cr Account payable 41400

4. Over applied overhead= $1,260

5. $634,340

Explanation:

1) Calculation for the overhead rate for the year

Using this formula

Overhead rate = Estimated overhead/Estimated hour

Let plug in the formula

Overhead rate = 129600/13500

Overhead rate = 9.60 per hour

2) Calculation for the total cost of Job K456

Total cost of Job K456

Direct material 2750

Direct labor 5355

Overhead 3024

(5355/17*9.60)

Total cost of Job $11129

3) Preparation of the journal entries to record actual overhead and to apply overhead to production for the year.

Dr Manufacturing overhead 172500

(6800+19340+90400+14560+41400)

Cr Lease payable 6800

Cr Accumulated depreciation-Building 19340

Cr Wages payable 90400

Cr Utilities payable 14560

Cr Account payable 41400

(Being To record actual overhead)

Work in process (18100*9.6) 173760

Manufacturing overhead 173760

(To record applied overhead)

4) Calculation for whether overhead is overapplied or underapplied

Over applied overhead = 173760-172500

Over applied overhead= $1260

5) Calculation for the adjusted cost of goods sold

Adjusted cost of goods sold = 635600-1260

Adjusted cost of goods sold= $634340

8 0

3 years ago

An individual consumes products X and Y and spends $36 per time period. The prices of the two goods are $3 per unit for X and $2

vekshin1

Answer:

a) 3X + 2Y = 36

b) X = 6 , Y = 9

c) 27

Explanation:

Individual consumes : X and Y

Spends : $36 per time period

unit cost : $3 per unit for X

$2 per unit for Y

utility function : U( X, Y ) = .5XY

A) Budget equation mathematically

X* Px + Y* Py = M

3X + 2Y = 36

Px and Py = unit cost for X and Y

M = Total spent ( revenue )

b) Values of X and Y that will maximize utility

Maximum utility ( MRS ) = Px / Py ,

MRS = MUx / MUy

= Y/X = 3/2

∴ 2Y = 3X

From BC : 6X = 36 ( X = 6 plug into mathematically equation above )

∴ X = 6 , hence Y = 9

c) Total utility generated per unit of time

U( X,Y ) = .5XY

= 0.5 * 6 * 9 = 27

6 0

3 years ago