The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.
Answer:
Labour rate variance $2,925 unfavorable
Explanation:
<em>The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours</em>
$
Standard labour cost ($19.70× 6500) 128,050
Actual labour cost <u>130,975</u>
Labour rate variance <u> 2,925 unfavorable</u>
Answer:
<u>Break-even Sales:</u>
Remo Company $128,346.17
Angelo Inc. $201,649.86.
Explanation:
Break-even Sales is the dollar amount of revenue at which there will be neither Profit nor Loss. In other words, it a Point at which Contribution Margin is equal to Fixed Costs. The Formula to Calculate Break-even Sales is:
Fixed Cost / Contribution Margin Ratio
where
Contribution Margin Ratio is Sales less Variable Expenses, and expressed as a percentage of Sales.
Remo Company
Contribution Margin Ratio = 75,000 / 275,000 = 27.27%
Break-even Sales = 35,000 / .2727 = $128,346.17
Angelo Inc.
Contribution Margin Ratio = 150,000 / 275,000 = 54.55%
Break-even Sales = 110,000 / .5455 = $201,649.86.
Answer:
A. remain constant on a per-unit basis but change in total based on activity level
Explanation:
In the short run, variable costs only vary according to the total output of the company. E.g. a company's variable cost of manufacturing product X is $10 per unit. If it produces 10,000 units, total variable costs will = $10 x 10,000 = $100,000.
In the long run variable costs will probably vary because production processes will also vary or the cost of inputs change.
Answer:
$4,000 of cost of goods sold expense on their statement of income.
Explanation:
Depreciation on manufacturing equipment is an overhead cost which is therefore a product cost. The amount of the depreciation is first placed in the Inventory account and then transferred to the Cost of Goods Sold account when the units are sold. Since the company made 2,500 units of product and sold 2,000 units of the product , the amount of the Cost of Goods Sold account is:
$4,000
(5,000 depreciation / 2,500 units = $2 per unit
$2 per unit x 2,000 units sold = $4,000 cost of goods sold.
The remaining $1,000 of depreciation would remain in the inventory account until the time the remaining goods are sold.
