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Allushta [10]
3 years ago
11

Eco Strip Inc. makes a paint remover which is made up of two direct materials, X and Y. The standard costs and standard quantiti

es are as follows. Each gallon of paint remover requires 0.3 gallons at $4.00 per gallon of material X and 0.7 gallons at $6.00 per gallon of material Y. During April, Eco Strip produced 50,000 gallons of paint remover, used 17,000 gallons at $4.25 per gallon of material X, and used 38,000 gallons at $5.90 per gallon of material Y. What are the mix and yield variances for material X for the month of April?
a. $2,000 U; $6,000 U.
b. $3,000 U; $5,000 U.
c. $10,000 U; $2,000 F.
d. $10,000 F; $18,000 U.
e. None of these.
Business
1 answer:
Neporo4naja [7]3 years ago
4 0

Answer:

a. $2,000 U; $6,000 U

Explanation:

Material Mix Variance for X = (Actual Usage in standard proportions - Actual Usage in Actual Proportions) * Standard Price per unit

= ((55000*0.3) - 17000) * $4

= $2,000 Unfavorable

Material Yield Variance for X = (Expected input units in standard proportions - Input units based on Actual output) * Standard Price per unit

= ((55000*0.3) - (50000*0.3)) * $4

= $6,000 Unfavorable

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When actual revenue ______ what the revenue should have been, the variance is labeled favorable.
xeze [42]

When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.

Hope that helps!

6 0
2 years ago
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Aaron Company uses the periodic inventory cost flow method. If Aaron's ending inventory is understated due to an accounting erro
cestrela7 [59]

Answer:

a. net income= understated, retained earnings= understated

Explanation:

In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>,  then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>

Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.

4 0
3 years ago
Identify which of the following statements is true.
Papessa [141]

Answer:

B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

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6 0
3 years ago
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MA_775_DIABLO [31]

Answer:

Rewarding behavior, not just results

Explanation:

Effective recognition means that you have to recognize the effort that being put by the person , not just the ideal outcome.

Let's say that you want to influence your employees to improve their productivity. There is a chance that some might fall and some might succeed.

Those who fall does not necessarily make lesser effort than those who success. There is a chance that they're focusing their effort on the wrong things.

In such situations, you need to acknowledge and reward the fact that they're willing putting the effort and give them advice on how to nudge the effort's direction so it become more effective.

4 0
3 years ago
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Positive outcome would be having a good time with your friend and negative consequences would be getting in trouble if caught and or banned from going to football games
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3 years ago
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