Hanson Inc. has the following variable manufacturing overhead standard to manufacture one Zippy: 1.5 standard hours per Zippy at $3.00 per direct labor hour
Last week, 1,550 hours were worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.
1. Hanson’s rate variance (VMRV) for variable manufacturing overhead for the week was:_______.
a. $465 unfavorable.
b. $400 favorable.
c. $335 unfavorable.
d. $300 favorable
2. Hanson’s efficiency variance (VMEV) for variable manufacturing overhead for the week was:______.
a. $435 unfavorable.
b. $435 favorable.
c. $150 unfavorable.
d. $150 favorable.
Answers
Answer:
Variable manufacturing overhead rate variance= $465 unfavorable
Variable overhead efficiency variance= $150 unfavorable
Explanation:
Giving the following information:
Standard:
1.5 standard hours per Zippy at $3.00 per direct labor hour
Actual:
1,550 hours to make
1,000 Zippies
$5,115 was spent
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 5,115/1,550= $3.3
Variable manufacturing overhead rate variance= (3 - 3.3)*1,550
Variable manufacturing overhead rate variance= $465 unfavorable
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3
Variable overhead efficiency variance= $150 unfavorable
Related Questions
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: An emotional one for the project team. An emotional one for the clients. One that is external and intellectual. One that is internal and intellectual.
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciationamount in the thirdyear and the BV at the end of the fifth year of life by each of these methods:
Pelican, Inc. had revenues of $395,000, expenses of $155,000, and dividends of $54,000 during the current year. Based on the given information, which of the following statements is true?a. Net income for the current year totaled $186,000. b. Total retained earnings decreased by $186,000 during the current year. c. Total retained earnings increased by $240,000 during the current year. d. Net income for the current year totaled $240,000
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.Cash Net Income A. Purchased $100 of supplies for cash. –$100 $0B. Recorded an adjusting entry to record use of $30 of the above supplies. C. Made sales of $1,250, all on account. 1297 1164 D. Received $850 from customers in payment of their accounts. 865 299 E. Purchased equipment for cash, $2,600. 2528 2229F. Recorded depreciation of building for period used, $650. 610 2839
Answers
Answer:
Returns to scale = 1.15
Increasing returns to scale.
Explanation:
Cobb-Douglas production function of the form:
Here, we are using a simple rule of factors to find the returns to scale:
Hence,
By adding up the powers of L and K, we can get the returns to scale.
Returns to scale = 1.15
Suppose, the power of L be 'a' and the power of K is 'b',
if a + b = 1, then it exhibits constant returns to scale
if a + b > 1, then it exhibits increasing returns to scale
if a + b < 1, then it exhibits decreasing returns to scale.
In our case,
a + b = 1.15 which is greater than 1, so this production function exhibits increasing returns to scale.
Answers
Answer:
A = $3136.51875
Explanation:
Given that :
The principal = $3,000.00
Rate = 9%
Time = 6 months
Since the amount is compounded quarterly;
r = 9/4 = 2.25 %
t = 6 months = 2 quarter
Using the formula:
A = P(1+r/100)^t
A = 3000.00(1+ 2.25/100)^2
A = 3000.00( 1+ 0.0225)^2
A = 3000.00 (1.0225)^2
A = 3000.00 (1.04550625)
A = $3136.51875
b. 200
c. 50
d. 100
e. 1000
Answers
Answer: 100
Explanation: Its 100
Answers
Answer:
Ending Inventory:21,267.70
Explanation:
cost retail
beginning 12,700 20,900
purchases 113,930 158,500
markups 9,600
markdowns (7,400)
total 126,630 181,600
inventory to retail ratio: 126,630 / 181,600 = 0.6973
sales revenues 151,100
COGS: 151,100 x 0.6973 = 105,362.30
Ending Inventory: 126,630 - 105,362.30 = 21,267.70
(C) mutual trust is based on an ongoing process of give and take.
Answers
Answer:
(A) an ongoing process of give and take is based on mutual trust.
Explanation:
Tragedy of the commons is a situation where individuals in a shared resource system act independently in their own self-interest. They behave in opposition to the common good and deplete shared resources.
In shared resource system there needs to be a collaborative approach between the parties to make sure resources are not exploited.
There needs to be an ongoing process of give and take based on mutual trust to sustain the system.
The concept of the tragedy of the commons has been used in sustainable development, economics, sociology, politics, taxation, and global warming.
Answers
Answer:
c. $255,000
Explanation:
Rouge should report the following income for this quarter = $250,000 (net income) + $20,000 (cumulative effect loss) - $15,000 (25% of annual property taxes) = $255,000
Cumulative effects on inventory valuation occur when overstate or understate your inventory levels, which directly affects cost of goods sold and overall profits.