Answer:
a) Sales volume variance = $1496000 unfavorable
flexible-budget variance = $192000 favorable
b) For direct materials
Price variance = `$135000 unfavorable
efficiency variances = $527920 favorable
For direct manufacturing labor
Price variance = `$36600 unfavorable
efficiency variances = $914815 favorable
Explanation:
a) Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit = (4800 - 7000) × $680 = $1496000 unfavorable
flexible-budget variance = (Actual price - Budgeted price) x Actual units sold= ($720 - $680) × 4800 = $192000 favorable
b) For direct materials
Price variance = (Actual cost - standard cost) x Actual quantity of units purchased = ($5.95/ pound - $8/pound) × 66000 pound= `$135000 unfavorable
efficiency variances = (Actual unit - Standard unit) x Standard cost per unit = (66000 pound - 10 pound) × $8 per pound= $527920 favorable
For direct manufacturing labor
Price variance = (Actual cost - standard cost) x Actual hours = ($48/hour - $50/hour) × 18300 hours = `$36600 unfavorable
efficiency variances = (Actual hours - Standard hours) x Standard cost per hour= (18300 hour - 3.7 hour) × $50/hour = $914815 favorable
Answer: (A) Greenfield investment
Explanation:
The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.
The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.
According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.
Therefore, Option (A) is correct answer.
Answer:
The company total profit is $2,200
The realization of the $2,200 total profit will be on the day-to-day basis with the time frame as followed:
- $800 will be realized in the 2018 ( from September to end of the year);
- $1,400 will be realized in 2019 ( from the begining of 2019 to the time the position is closed.
(a) A Hedger will be taxed on his/her $2,200 profit on the year of 2019;
(b) A Speculator will be taxed on his/her $2,200 profit right it is realized. In other words, $800 of profit will be taxed in 2018 and 1,400 of profit will be taxed in 2019.
Explanation:
- The total profit is calculated as: ($50.50-$48.30) x 1,000 = $2,200;
- The profit realized in 2018 is calculated as ( $49.10-$48.30) x 1,000 =$800;
- The profit realized in 2019 is calculated as ( $50.50-$49.10) x 1,000 =$1,400.
Answer:
It is more convenient to sell the units unfinished by $500.
Explanation:
Giving the following information:
Units= 1,000
Unfinished:
Selling price= $4.00 per unit.
Complete:
Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead
Selling price= $8.00 each.
We need to calculate the gross profit of each option and choose the more convenient:
Unfinished:
Gross profit= 1,000*4= $4,000
Complete:
Gross profit= 1,000*(8 - 4.5)= $3,500
It is more convenient to sell the units unfinished by $500.
Answer: Yes, it's beneficial
Explanation:
Comparative advantage is the ability of a nation to produce goods at a lower opportunity cost when compared to its trading partners. A comparative advantage allows a firm sell its product at a lower price and make more sales.
In comparative advantage, the nation might not necessarily be the best at producing a particular good but it has a low opportunity cost in the production of the good for other nations to import. Comparative advantage leads to specialisation and enhances economic growth.
For example, if France can produce cheap grapes and Italy can produce cheap tomatoes, France should stop producing tomatoes and Italy should stop producing grapes. France should focus on the production of grapes while Italy should focus on tomato production. This will lead to more income for both economies since there is productive efficiency.
