All categories

3 years ago

Hanson Inc. has the following variable manufacturing overhead standard to manufacture one Zippy:

Business

1 answer:

victus00 [196]3 years ago

3 0

Answer:

Variable manufacturing overhead rate variance= $465 unfavorable

Variable overhead efficiency variance= $150 unfavorable

Explanation:

Giving the following information:

Standard:

1.5 standard hours per Zippy at $3.00 per direct labor hour

Actual:

1,550 hours to make

1,000 Zippies

$5,115 was spent

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 5,115/1,550= $3.3

Variable manufacturing overhead rate variance= (3 - 3.3)*1,550

Variable manufacturing overhead rate variance= $465 unfavorable

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3

Variable overhead efficiency variance= $150 unfavorable

You might be interested in

Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $300,000 for extrac

melomori [17]

Answer:

The cost of depletion in the current year is $90,000

Explanation:

Santa Fe's current year cost of depletion=cost of rights*Turquoise extracted in the current year/total estimated turquoise to be extracted

cost of rights is $300,000

turquoise extracted in the current year is 1,500 pounds

total estimated turquoise to be extracted over a five-year period is 5000 pounds

cost of depletion in the current year=$300,000*1500/5000

=$ 90,000.00

By extension profit for the year assuming no other costs were incurred is :

$200,000-$90,000=$110,000

4 0

3 years ago

the fair value of Carley is estimated to be $720,000. The carrying value of Carley’s net identifiable assets, including the good

zhannawk [14.2K]

Answer:

A.$200,000

B.Dr Loss on impairment $30,000

Cr Goodwill $30,000

Explanation:

(a) Computation of the amount of goodwill acquired by Vinson

Purchase price$900,000

Fair value of net assets $700,000

(Fair value of assets $950,000-

Fair value of liabilities $250,000)

Value assigned to goodwill $200,000

($900,000-$700,000)

(b) Preparation of Vinson’s journal entry to record impairment of goodwill.

Based on the information given we were told

the fair value of Carley is the amount of $720,000 while the implied fair value of goodwill is the amount of $170,000 and we were also told that carrying value of Carley’s net assets as well include the goodwill which is the amount of $750,000 which means that their is loss on impairment because the fair value amount is lower than carrying value which means that the journal entry to record impairment of goodwil will be ;

Dr Loss on impairment $30,000

($200,000 − $170,000)

Cr Goodwill $30,000

7 0

3 years ago

Given direct material cost of $10, direct labor cost of $15, direct-labor based overhead of $12 and Activity-Based Costing overh

Serga [27]

Answer:

Total cost of product using the Activity-Based costing

Particulars Amount

Material cost $10

Labor cost $15

Overheads cost under ABC $16

Total cost of product $41

5 0

3 years ago

When George and Arthurine Renfro decided to start a family business in 1990 and market chowchow, a southern regional food, they

Katyanochek1 [597]

Answer:

identifying pricing constraints.

Explanation:

From the question we are informed about George and Arthurine Renfro decided who decided to start a family business in 1990 and market chowchow, a southern regional food, they had to determine how they would price the chowchow by examining the demand for the product (would people rather eat home-made or store-bought), the cost of getting the jars for bottling the chowchow, and how much it would cost to distribute the product to area stores. In other words, in this case, the Renfros had to begin the development of their pricing strategy by identifying pricing constraints. .

Pricing constraints can be regarded as

factors which brings about limit of latitude of prices which a company may set.

7 0

3 years ago

Governments use _____ to make companies take responsibility for unintended effects. regulations tariffs externalities

Molodets [167]

In order for companies to take responsibility for unintended effects, governments put into place regulations. These regulations ensure that companies do not take actions in the conduct of their core businesses that create conflicting or possibly dangerous outcomes, such as exposing consumers to potential risk.

4 0

3 years ago

Read 2 more answers