Answer:
Explanation:
Solution:
1.
These reports seems not be the correct tool to calculate the performance. These reports compared to the main performance against the budgeted / planned sales level and budget or standard are not adjusted for under achievement of sales. If sales are less then variable cost should also be incurred less and its not wise to compare the main cost for lower sale volumes against budgeted expenses against higher sales revenue.
2.
The budget figure or benchmark figures for the variable expenses should be adjusted for actual level of revenue and then actual expenses incurred should be compared and variance should be calculated
3.
Revised performance report: Planning Adjusted Actual Budget budget result Variance Machine hours 40000 35000 Variable cost: 32000 28000 29700 1700 (A) Supplies scrap 20000 17500 19500 2000 (A) Indirect
Answer:
They will have $37,595.23 in mutual fund in 15 years
Explanation:
<em>Step 1: Determine the present value of savings</em>
This can be expressed as;
Present value=monthly savings×number of months in 15 years
where;
monthly savings=$50
number of months in 15 years=12×15=180 months
replacing;
Present value=50×180=$9,000
<em>Step 2: Determine the future value of savings including interest</em>
This can be expressed as;
FV=PV(1+R)^N
where;
FV=future value
PV=present value
R=annual interest rate
N=number of years
In our case;
FV=unknown
PV=$9,000
R=10%=10/100=0.1
N=15 years
replacing;
FV=9,000(1+0.1)^15
FV=9,000(1.1)^15
FV=$37,595.23
They will have $37,595.23 in mutual fund in 15 years
Answer:
Labor cost
Explanation:
Variable costs are the costs that can vary or depends on the output level of production.
Here,
In the given case the variable cost for the plant will be the labor cost.
The number of labor required for the production depends on the level of output volume.
For higher number of output more labor will be required and vice-versa.
Thus,
the labor cost will alter accordingly.
Answer: A. Separate costs into fixed and variable categories.
Explanation: The contribution income statement separates variable and fixed costs in an effect to show the amount of revenues left over after variable costs are paid, that is, it lists variable costs (costs that do not remain consistent) and fixed costs (costs that are constant whatever the amount of goods produced) in order to calculate the contribution margin of the company. It is also known as the contribution margin income statement. As opposed to the traditional income statement which separates product costs from period costs, it separates variable costs from fixed costs and is applied to determining net profit or loss for the period.
