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3 years ago

The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:

Business

1 answer:

Vedmedyk [2.9K]3 years ago

5 0

Based on the information given the variance is $500 favorable.

<h3>
Variance</h3>

Using this formula

Variance=Fixed Direct labor cost-Actual direct labor cost

Where:

Fixed Direct labor cost=$27,500

Actual direct labor cost=$27,000

Let plug in the formula

Variance=$27,500-$27,000

Variance=$500 favorable

Inconclusion the variance is $500 favorable.

Learn more about variance here:brainly.com/question/25639778

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Equilibrium levels of income and interest rates are ______ related in the goods and services market, and equilibrium levels of i

dsp73

Answer:

The correct answer is option D.

Explanation:

The income and interest rates are inversely or negatively related in the goods market.

An increase in interest rate would lead to increase in the cost of borrowing.As a result the capital investment will fall. This would further contribute in a decline in the production. This ultimately causes income level to decline.

In the money market though equilibrium levels of income and interest rate are positively related.

The equilibrium in the money market is determined by the intersection of demand for money curve and supply of money curve.

The demand for money depends on transactionary and precautionary motives. When there is an increase in income, the transactionary demand for money will increase as people will spend more. The increase in demand would cause the interest rate to rise.

In this way, income and interest rate arepositively related in the money market.

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3 years ago

Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboa

podryga [215]

Answer:

Contribution margin ratio:

For East Coast = 10%

For West Coast = 8.05%

Explanation:

As per the data given in the question,

Contribution margin by sales territory report :

C C S Inc.

Contribution margin by Territory

Particulars East Coast West Coast

Sales (a) $8,400,000 $8,610,000

(30,000×$280)+(0×$130)

(21,000×$280)+(21,000×$130)

Less: variable cost of goods sold(b) $6,600,000 $6,657,000

(30,000×$220)+(0×$97)

(21,000×$220)+(21,000×$97)

Manufacturing margin (c=a-b) $1,800,000 $1,953,000

Less: Variable selling expense (d) $960,000 $1,260,000

(30,000×$32)+(0×$28)

(21,000×$32)+(21,000×$28)

Contribution margin (e=c-d) $840,000 $693,000

For East Coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($840,000÷ $8,400,000)×100

= 10%

For west coast:

Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100

=($693,000 ÷ $8,610,000)×100

= 8.05%

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3 years ago

Agri-Cor sells farm equipment throughout the euro zone. The company has noticed that some customers travel to countries where eq

sergejj [24]

Answer:

These statements are correct:

It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.

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3 years ago

Choose the option that correctly completes the statement: ""A change in depreciation method is considered a _________ and theref

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Answer:

Option B Change in accounting principle; retrospectively; required.

Explanation:

The reason is that the change is policies are considered in the international accounting standard IAS-8 Accounting policies, estimates and correction of errors. The standard says that the change in depreciation method is considered as a change in accounting policy which must be treated as retrospectively which means that the adjustments must be made to all the previous years using the same depreciation and must reflect the change in Changes in Wquity statement. This change in accounting policy as per the requirement s of the standard, must be disclosed in the notes to financial statements. Furthermore the changes in equity must only be opted if it increases the truth and fairness of the financial statement.

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3 years ago

Your business has two branch stores. The recent physical inventory reports that the merchandise value for each store is: Store A

miv72 [106K]

Answer: Shrinkage for Store A ($40,890), Store B ($28,370)

Given:

Merchandise Value of Stores A and B

Book Value of Stores

Shrinkage<span> refers to the loss of inventory from whatever source. </span>

Shrinkage for each store is computed as:

Book Value – Merchandise Value

Shrinkage for Store A

A2-A1

495,275-454,385

$40,890

Shrinkage for Store B

B2-B1

615,225-586,855

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3 years ago