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Feliz [49]
3 years ago
11

Petrus Framing's cost formula for its supplies cost is $1,920 per month plus $11 per frame. For the month of March, the company

planned for activity of 632 frames, but the actual level of activity was 639 frames. The actual supplies cost for the month was $9,340. The activity variance for supplies cost in March would be closest to:
Business
1 answer:
Brut [27]3 years ago
4 0

Answer:

Total variance= 391 unfavorable

Explanation:

Giving the following information:

Petrus Framing's cost formula for its supplies cost is $1,920 per month plus $11 per frame. For March, the company planned for activity of 632 frames, but the actual level of activity was 639 frames. The actual supplies cost for the month was $9,340.

Estimated= 1,920 + 639*11= 8,949

Real= 9,340

Total variance= real - estimated

Total variance= 9,340 - 8,949= 391 unfavorable

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Answer:

$175,808

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By putting above values in formula, we get

P=R(1-(1+.08)^-5)/.08

702,000=R*3.993

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<h3>What are economic considerations?</h3>

These are the factors that will affect the profitability and viability of a business.

In Richard's case, he needed to have considered various costs such as the higher cost of maintaining used trucks and the cost of gasoline that he will incur for living so far from big cities.

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Answer: C. an implied contract.

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The basic principle of this contract is that people should always be treated fairly in business transactions so the need to always pen it down is not necessary.

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