All categories

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

You might be interested in

.What factors negatively affected the economy of appalachia in the 1950s?\

Vladimir79 [104]

There were a few factors that occurred in the 1950's to affect the economy such as automated loader and undercutting machines in the coal mines. The people of Appalachia depended on the coal mines for their incomes. Coal prices declined in the 1950's and this led to numerous lay-offs and people being unemployed with little jobs in the community.

4 0

3 years ago

True or false: It is acceptable accounting practice to initially record prepaid rent in either a balance sheet or income stateme

umka2103 [35]

Answer:

False

Explanation:

In the initial period, the prepaid expenses should be recorded in the assets hand side of the balance sheet under the current asset column

But when some adjustments are made regarding this in terms of gains or expenses incurred, the same should be presented on the income statement

Hence, the given statement is false as it is recorded in the assets only during the initial period

4 0

3 years ago

What is a motive? It’s for finance

CaHeK987 [17]

A motive is a drive to do something.

8 0

3 years ago

Read 2 more answers

If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be

masya89 [10]

If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be B to A.

<h3>What happens when prices rise?</h3><h3 />

For Normal goods, a rise in prices would mean a fall in the quantity demanded. This is shown by the demand curve which shows the relationship between the quantity demanded and price.

When there is a price change, the movement will be along the demand curve which means that the demand curve would see a movement from Point B to Point A for coconuts.

Find out more on price changes and the demand curve at brainly.com/question/1139186

#SPJ1

8 0

1 year ago

An investor company owns 30% of the outstanding common stock of an investee company, which allows the investor to exercise signi

kodGreya [7K]

Answer:

Note: The full question is attached as picture below

a. Equity income that the investor should report in its income = Net income * Investor share = 400,000 * 30% = $120,000

b. Particulars Amount

Equity investment opening 500,000

Add: Equity income 120,000

Less: Dividend paid 60,000

Equity investment at end of year 560,000

c. The fair value of the Investee company will remain at adjusted cost. and the investment is not adjusted to fair value

5 0

3 years ago