All categories

2 years ago

Michael Corporation manufactures railroad cars, which is its only product. The standards for the railroad cars are as follows:

Business

1 answer:

Fittoniya [83]2 years ago

6 0

Answer:

Direct material quantity variance= $850 unfavorable

Explanation:

Giving the following information:

Standard tons of direct material (steel) per car 4

Standard cost per ton of steel $ 17.00

During March, the company produced 1,650 cars.

Actual materials purchased and used (tons) 6,650

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

<u></u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4*1,650 - 6,650)*17

Direct material quantity variance= $850 unfavorable

You might be interested in

Consider the case of Demed Inc.: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity.

solong [7]

Answer:

A) YTM = 7.64%

B) YTC = 7.36%

C) 8 years

D ) 7.64%

Explanation:

Annual coupon bond rate = 9%

number of year left until maturity = 18

par value of Bonds( FV ) = $1000

current market price( PV ) = $1130.35

Demed can call bonds in 8 years at a call price of $1060

A) what is the Bonds' YTM ( yield to maturity )

we calculate the interest per period ( PMT )

= ( Fv * Annual coupon bond rate) / number of compounding per year

= (1000 * 9% ) / 1 = $90

next we calculate number of compounding periods till maturity ( NPER )

= number of years to maturity * number of compounding per year

= 18 * 1 = 18

using excel formula = RATE ( NPER,PMT,PV,FV) )

hence yield to maturity = 7.64%

B) what is YTC ( yield to call )

we calculate the interest per period ( PMT )

= $1000 * ( coupon rate / number of compounding per year )

= $1000 * ( 9% / 1 ) = $90

next we calculate the number of compounding periods till sell

= 8 * 1 = 8

using excel formula = RATE ( NPER,PMT,PV,FV) )

Hence the YTC = 7.36%

C) Bonds will be called at 8 years and this is because the YTC is less than YTM

D ) The coupon rate for the bonds to be issued at par, is 7.64%

6 0

3 years ago

dupe's age and olu's add upto 25 years. Eight years ago , dupe was twice as old as olu. how old are they now?

Bas_tet [7]

Dupe's present age = 14 years

Olu's present age = 11 years

Explanation:

Let Dupe's age be x. Let Olu's age be y. Since their ages add up to 25 years, x + y = 25
Eight years ago Dupe's age was double that of Olu's age. Solving by simultaneous equations. Four methods are Elimination Method, Graphical Method, Substitution Method, and Matrix Method. Let us try out Elimination method for solving a pair of simultaneous linear equations that reduces one equation to one that has only a single variable. Once this has been done, the solution is the same as that for when one line was vertical or parallel.
Therefore, eight years ago, Dupe's age was 6 and Olu's age was 3 so that x=2y becomes, 6=2*3. Eight years hence, x=6+8=14 and y=3+8=11. That makes, x or Dupe's age as 14 years and y or Olu's age as 11 years.

6 0

3 years ago

What is a consumer product?

liraira [26]

Answer:

Final Good

Products that are bought by individuals or households for personal use.

3 0

2 years ago

Read 2 more answers

You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that

insens350 [35]