explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points ex
1 answer:
You might be interested in
Answer:
Direct labor rate variance = (SR - AR) AH
October = ($15 - $15.20) 16,250 = - $3,250 Unfavorable
November = ($15 - $15.25) 22,000 = - $5,500 Unfavorable
Direct Labor Efficiency Variance = (SH - AH) SR
October = (16,800 - 16,250) $15 = 8,250 Favorable
November = (18,000 - 22,000) $15 = - $60,000 Unfavorable
Direct Labor Cost Variance = Standard Cost - Actual Cost
October = $252,000 - $247,000 = $5,000 Favorable
November = $270,000 - $335,500 = - $65,500 Unfavorable
Explanation:
Computing variances for each month
Particulars October November Equation
Total units produced 5,600 units 6,000 units (a)
Standard hour per unit 3 hours 3 hours (b)
Total standard hour SH 16,800 18,000 (c) = (a)*(b)
Total standard cost
of labor @ $15 SR per hour $252,000 $270,000 (d) = (c) * 15
Actual hours used AH 16,250 22,000 (e)
Actual cost $247,000 $335,500 (f)
Actual Rate per hour AR $15.20 $15.25 (g) = (f)/(e)
Using the above information we have
Direct labor rate variance = (SR - AR) AH
October = ($15 - $15.20) 16,250 = - $3,250 Unfavorable
November = ($15 - $15.25) 22,000 = - $5,500 Unfavorable
Direct Labor Efficiency Variance = (SH - AH) SR
October = (16,800 - 16,250) $15 = 8,250 Favorable
November = (18,000 - 22,000) $15 = - $60,000 Unfavorable
Direct Labor Cost Variance = Standard Cost - Actual Cost
October = $252,000 - $247,000 = $5,000 Favorable
November = $270,000 - $335,500 = - $65,500 Unfavorable
Answer:
Desing A is a better deal as the equivalent annual cost is lower than desing B
Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes
Explanation:
<em><u>Desing A </u></em>
F0 405,000
operating and maintenance cost 51,000 for 14 years
Present value of the operating and maintenance cost:
C = $ 51,000.00
time = 14 years
rate = 0.07
PV $446,018.8673
net worth: $ 851,081.87
equivalent annual cost:
PV 851,082
time 14
rate 0.07
C $ 97,316.904
<u><em>Desing B</em></u>
F0 251,000
operating and maintenance cost 89,000 for 14 years
C 89,000.00
time 14
rate 0.07
PV $778,346.6507
net worth: $ 1,029,346.65
equivalent annual cost:
C $ 117,700.580