Answer:
Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. Product cost can also be considered the cost of the labor required to deliver a service to a customer.
Examples of product costs are direct materials, direct labor, and allocated factory overhead which are directly attributable to the product.
period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A period cost is more closely associated with the passage of time than with a transnational event. ... Instead, it is typically included within the selling and administrative expenses section of the income statement.
Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities. Period costs are sometimes broken out into additional subcategories for selling activities and administrative activities
Depreciation charges are the attention to the Accumulated Depreciation account, which is a noncash equity sheet account. Depreciation is combined to that account in order to adjust net income for all of the charges in the noncash equity sheet account appeared in the period.
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:
$511,667
Explanation:
The computation of the depreciation expense for 2019 and 2020 is shown below:
= (Purchase price - residual value) ÷ (useful life)
= ($10,500,000 - $2,500,000) ÷ (25 years)
= ($8,000,000) ÷ (25 years)
= $320,000
The depreciation in this method is the same for the rest of the useful life
Now the book value for 2021 would be
= Purchase price - depreciation for 2 years
= $10,500,000 - $320,000 × 2
= $9,860,000
Now the depreciation for 2021 would be
= ($9,860,000 - $650,000) ÷ 18 years
= $511,667
The answer to this question is: Risk
In most cases, something that give the potential reward of time, money, and reputation will also possess the risk of losing that same thing at the same degree. This principle will often used by investors to choose which portofolio that they want to pursue with their capital.
