All categories

2 years ago

EB17.

Business

1 answer:

nekit [7.7K]2 years ago

6 0

Answer:

$600 unfavorable

Explanation:

The budgeted cost of producing 14,000 units at $5.50 per unit and with fixed costs of $19,400 is:

$B = 14,000*5.50 + 19,400\\B= \$96,400$

The variance is given by subtracting the budgeted cost by the actual cost ($97,000):

$V= \$96,400 - \$97,000\\V= -\$600$

Since the variance is negative, the variance is unfavorable

You might be interested in

Two workers have the job of placing plastic labels on packages before the packages are shipped out. The first worker can place 1

monitta

Answer:

The correct answer is: The second worker.

Explanation:

Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs. It is a measure of efficiency. Typically inputs are raw materials, labor, and capital assets. Outputs are generally expressed as either revenue or total units of finished goods.

In the example, a form to measure each worker's productivity is comparing how many plastic labels they can place per hour. Thus:

Worker 1: 1000 per 1/2 hour (30 minutes)
Worker 1: 2000 per 1 hour

Worker 2: 850 per 1/3 hour (20 minutes)
Worker 2: 2550 per 1 hour

Then, the second worker is more productive.

3 0

2 years ago

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $69,000

USPshnik [31]

Answer:

bad debt expense 18,000

Explanation:

bad debt 1% of credit sales:

180,000 x 1% = 18,000

When the adjustment is made base on sales, the current balance in the allowance for doubtful debts is irrelevant.

So no calculation is needed for those.

8 0

2 years ago

Polk Products is considering an investment project with the following cash flows:

Andrei [34K]

Answer:

b. 1.86 years

Explanation:

The computation of the project's discounted payback is shown below:-

Year Cash Flows Discounted CFs (at 10%) Cumulative

Discounted CFs

0 -$100,000 -$100,000 -$100,000

1 $40,000 $36,363.64 -$63,636.36

2 $90,000 $74,380.17 $10,743.80

3 $30,000 $22,539.44 $33,283.25

4 $60,000 $40,980.81 $74,264.05

Discounted Payback Period = Years before full recovery +

(Uncovered Cost at start of the year ÷ Cash Flow during the year)

Now we will put the values into the formula

= 1 + ($63,636.36 ÷ $74,380.17)

= 1 + 0.86

= 1.86 years

6 0

2 years ago

Marathon Company has 10,000 units of its product that were produced last year at a total cost of $150,000. The units were damage

V125BC [204]

Answer: Marathon should repair the units since an income of $12000 will be gotten.

Explanation:

Based on the information given, the following can be deduced:

Revenue when repaired = 10000 × $5 = $50000

Revenue if sold without repair = 10000 × $2 = $20000

Incremental revenue = $50000 - $20000 = $30000

Cost to repair = $18000

Incremental be Income = $30000 - $18000 = $12000

Therefore, Marathon should repair the units since an income of $12000 will be gotten.

8 0

2 years ago

Assume that candle wax is traded in a perfectly competitive market in which the demand curve captures buyers’ full willingness t

svlad2 [7]

Answer:

The answers are as follows:

A. Output should be Increased

B. Output should be Decreased

C. Output should be kept the same

D. Output should be Decreased

Explanation:

For A.

When the maximum willingness to pay exceeds minimum acceptable price, the Output should be increased because customers are willing to pay more for the product, therefore more revenue will be accrued, and this will lead to more profit.

For B.

When mc > mb, that is, when marginal cost is greater than marginal benefits, output should be decreased. This is because profit is maximized when Marginal costs equal Marginal benefits, therefore when Marginal costs exceed Marginal Benefits, a loss is incurred and output should be decreased.

For C.

When total surplus is at a maximum, output should be kept the same, this is because adding extra outputs at this maximum stage will lead to diminishing returns on capital.

For D.

When the current quantity produced exceeds the market equilibrium quantity, output should be reduced in order to avoid flooding the market with excess products which will then lead to a decrease in price.

6 0

2 years ago