Answer:
D. 8.000 Bedford Lamps and 2.500 Lowell Lamps
Explanation:
The computation of the optimum operating income is shown below:
Particulars Bedford Lamp Lowell Lamp
Sales price $30 $35
Less: Variable costs $18 $ 23
Contribution $12 $12
Machine hours 2 4
Contribution per machine hour 6 3
(Bedford = 12 ÷ 2, Lowell = 12 ÷ 4)
As we can see that the contribution margin per hour of Bedford Lamp is more than that of Lowell lamp so the production of Bedford Lamp should produced first and then Lowell Lamp.
And, required hours to make 8,000 units of bedford lamp is
= 8,000 × 2
= 16.000 hours
Now Balance Hours is
= 260,00 - 16,000
= 10,000 hours
Lowell lamp that can be made from 10000 hours is
= 10,000 ÷ 4
= 2,500 Lowel Lamps
Answer:
Explanation:
The journal entry is shown below:
Not realized gain or loan A/c Dr $300,000
To Estimated liability on purchase of raw material $300,000
(Being the difference is recorded)
The difference is computed by
= Purchase value of raw material - market value of raw material
= $1,500,000 - $1,200,000
= $300,000
Answer:
$30 Favorable
Explanation:
Calculation for the activity variance for supplies cost in March
Using this formula
Activity variance = (Actual units - Budgeted units) * Variable cost
Where,
Actual units=856
Budgeted units=861
Variable cost=$6
Let plug in the formula
Activity variance=(856-861) * $6
Activity variance=5*$6
Activity variance=$30 Favorable
Therefore the activity variance for supplies cost in March would be closest to: $30 Favorable
No, they can be used for mechanical uses
Answer:
To execute new strategy
Explanation:
Firms and organisations on a quarterly or yearly basis try to change their business strategies to improve revenues and to compete in the market. Overall, implementing a new strategy is complex and it is important to perform restructuring in order to effectively apply a strategy. A restructuring process helps to easily adopt a strategy without complexities.
