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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Answer:
b
Explanation:
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Answer:
Net operating income= $550
Explanation:
Giving the following information:
Maribel:
Sales= $6,000
Variable cost= $5,900
Contribution margin= $100
Jessica:
Sales= $10,700
Variable cost= $7,100
Contribution margin= $3,600
Timothy:
Sales= $12,350
Variable costs= $12,000
Contribution margin= $350
The total fixed costs for the month amount to $3,500.
Net operating income= contribution margin - fixed costs
Net operating income= (100 + 3,600 + 350) - 3,500= $550
Answer:
a. The cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost is $2,280.
b.The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
Explanation:
According to the given data, the standard direct-labor cost during each of these months was $38,000, therefore, in order to calculate the cutoff value for investigation, we would have make the following calculation:
Cutoff value for investigation =6% of Standard cost =$38,000 *6% =$2,280
The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
