Answer:
The correct answer is D: $3500 unfavorable
Explanation:
Giving the following information:
Standard:
Direct materials standard 10 pounds per unit
Direct materials standard cost $0.75 per pound
Actual:
Material purchased cost $0.85 per pound
Direct materials purchased 40,000 pounds
Direct materials used 35,000 pounds
Finished goods produced 4,500 units
Direct material price variance= (SP-AP)*AQ
SP= standard price
AP= actual price
AQ= standard quantity
Direct material price variance= (0.75-0.85)*35000
Direct material price variance= $3500 unfavorable
Answer:
(i) Base year prices
(ii) between two consecutive years
Explanation:
formula for GDP deflator is (real GDP)/(nominal GDP) x 100 which is the numerator real GDP where prices are valued at the current year adjusted to inflation or deflation and then the denominator where prices are valued at a base year where prices are valued at a nominal year which are not adjusted to any inflation or deflation.
The CPI ( consumer price index) is calculated by determining the rise or fall in price of a good or goods in two consecutive periods which in turn gives us the increase or decrease in price percentage.
Answer:
D. layoffs
Explanation:
A contingency plan is an alternative plan of action in case of unexpected outcomes. It is devised and kept in place to be implemented in bad times. A contingency plan is a sort of a risk mitigation plan to help the business navigate through a bad situation efficiently.
A contingency plan for labor include measures that can help a business overcome tough seasons. The business may need to layoff some employees to save on labor in times of economic downtime
Answer:
Option C is the answer
Explanation:
The degree of operating leverage is measured by dividing the contribution margin by operating income.
The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.
