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sveta [45]
3 years ago
10

Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct l

abor-hours. The company uses a standard cost system and has established the following standards for one unit of product:Standard Quantity Standard Priceor Rate Standard CostDirect materials 1.5 pounds $ 5.25 per pound $ 7.88Direct labor 0.5 hours $ 15.00 per hour $ 7.50Variable manufacturing overhead 0.5 hours $ 3.50 per hour $ 1.75During March, the following activity was recorded by the company:The company produced 4,800 units during the month.A total of 10,700 pounds of material were purchased at a cost of $29,960.There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,140 pounds of material remained in the warehouse.During March, 2,600 direct labor-hours were worked at a rate of $15.50 per hour.Variable manufacturing overhead costs during March totaled $4,750.The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for March is:
Business
1 answer:
Harman [31]3 years ago
3 0

Answer:

$7,140 unfavorable

Explanation:

The computation of the  materials quantity variance for March  is shown below;

We know that

Material Quantity Variance = Standard rate × ( Standard Quantity for actual production - Actual Quantity Used)  

=$5.25 × ([4,800 units × 1.5 pounds per unit] - (10,700 - 2,140)    

=$5.25 ×  (7,200 pounds - 8,560 pounds)      

= $7,140 unfavorable

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2 years ago
When Ajax Co. produced 3 units of output per​ week, its total fixed cost was ​$100100 and total variable cost was ​$5050. When o
zimovet [89]

Answer:

$170

Explanation:

As we know that

Total cost = Total fixed cost + total variable cost

The total fixed cost would remain the same whether the production level increases or not but the case is not the same as the total variable cost. In total variable cost, the output will change as per the production level changes

When output was 4 units per week, The total cost would be

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8 0
3 years ago
Which of the following statements is TRUE?
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Explanation:

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A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

8 0
4 years ago
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Sveta_85 [38]

Answer:

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6 0
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hram777 [196]
I think the most appropriate answer would be D.



I hope it helped you!
4 0
4 years ago
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