Listing the pros and cons for each of your options is a part of which step in the decision-making process?.

Wave Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours.

horsena [70]

Answer:

B. $ 3,650 U

Explanation:

Wave Fashions

Actual fixed overhead $ 32,000

Budgeted fixed overhead $ 26,000

Allocated fixed overhead $ 28,350

Standard overhead allocation rate $ 6.75

Standard direct labor hours per unit 2.1 DLHr

Actual output 2,000 units

Total Fixed Overhead Variance = Budget Variance + Volume Variance

=$ 6000 Unfav - $ 2350 Fav= $ 3650 Unfavorable

Budget Variance = Actual Fixed Overhead- Budgeted Fixed Overhead= $ 32,000- $ 26,000= $ 6000 unfavorable

Volume Variance = Budgeted Fixed Overhead- Allocated Fixed Overhead

Volume Variance= $ 26000- ( Standard Fixed Overhead Rate * Standard Hours)

Volume Variance= $ 26000- ( $ 6.75 * 2.1 * 2000)

Volume Variance= $ 26000- 28350 = 2350 favorable

6 0

3 years ago

Identify which control activity is violated in each of the following situations, and explain how the situation creates an opport

lesantik [10]

Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?

2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.

⇒ segregation of duties

One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.

3. Several clerks at Great Foods use the same cash register drawer

⇒ establishment of responsibility

If everyone is allowed to collect money, no one can be responsible for any loss.

8 0

3 years ago

The probability that inventory will remain in stock based upon a specified level of Safety Stock is called: A. The Order-Up-To L

horsena [70]

Answer:

The answer is "Option D".

Explanation:

The system's performance is gauged only by the level of service. The quality of service specifies the percentage of such goals which should be met. That likelihood of stock remaining in inventory based on a set level of Security Stock is referred to as the service level. Ex: In a contact center, the number of calls that are addressed. That percentage of consumers who have waited less than a fixed amount of time.

4 0

3 years ago

Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing depar

Svetllana [295]

Answer:

Ice Cream Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to: __________

= $17.97.

Explanation:

a) Data and Calculations:

Units Materials Conversion

Beginning work in process inventory 900 $13,000 $5,100

Degree of completion 75% 20%

Units started into production 9,600

Total units in production 10,500

Units completed and transferred 8,500 100% 100%

Ending work in process inventory 2,000 90% 30%

Units Materials Conversion

Beginning work in process inventory 900 $13,000 $5,100

Costs added during the month $172,100 $242,100

Total production costs for the month $185,100 $247,200

Equivalent units of production:

Units Materials Conversion

Units completed and transferred 8,500 8,500 (100%) 8,500 (100%)

Ending work in process inventory 2,000 1,800 (90%) 600 (30%)

Total equivalent units 10,300 9,100

Cost per equivalent unit:

Materials Conversion

Total production costs $185,100 $247,200

Total equivalent units 10,300 9,100

Cost per equivalent unit $17.97 $27.16

6 0

2 years ago

Suppose that the spot price of the US dollar is 1 ($/Canadian dollar) and the one-year forward rate is 1.2 ($/Canadian dollar),

natima [27]

Answer:

6 percent.

Explanation:

To solve this question, we will take help of the Fisher equation,

Therefore,

(Spot rate/Forward rate) = (interest rate in US/Interest rate in Canada),

(1/1.2) = (0.05/x), Now solving for 'x'.

There fore,

x = (1.2 * 0.05) / 1

x = 0.06.

Hope this clear things up

Thankyou.

7 0

3 years ago