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3 years ago

The following data relate to the direct materials cost for the production of 2,200 automobile tires:

Business

1 answer:

vivado [14]3 years ago

5 0

Answer:

A) - $2585

$1750

-$835

B) Purchasing department , Purchasing supervisor , purchasing department

Explanation:

A) calculations for direct material price variance , quantity variance and total direct materials cost variance

Direct material price variance = 51,700 * ( 1.7 - 1.75 ) = -$2585.

Direct material Quantity variance = 1.75 ( 51700 - 50700 ) = $1750

Total direct materials Cost variance = 87890 - 88725 = - $835 a

The direct materials price variance should normally be reported to the Purchasing department.

When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the production supervisor

When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing department

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Answer: I found the complete question on Google:

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Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The

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Answer:

$409185

Explanation:

Given: Budgeted output units: 28,475 units

Budgeted machine-hours: 17,085 hours

Budgeted variable manufacturing overhead costs for 28,475 units: $358,785

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Actual machine-hours used: 15,000 hours

Actual variable manufacturing overhead costs: $384,060.

First, we will find Budgeted machine hour per unit produced.

Budgeted machine hour per unit produced= $\frac{Budgeted\ machine\ hour}{Budgeted\ units}$

⇒ $Budgeted machine hour per unit produced= 17085\div 28475= 0.6$

∴Budgeted machine hour per unit produced= 0.6

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Budgeted variable overhead rate per machine hour= $358785\div 17085= \$ 21$

Now, lets find out flexible budget amount.

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A depreciable asset has an estimated 15 percent salvage value. At the end of its estimated useful life, the accumulated deprecia

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Answer:

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