Answer:
Explanation:
Labor Rate Variance = (Budgeted Rate-Actual Rate) * Direct manufacturing labor hours
= (15 - 15.25)* 500
= 125 Unfavorable
Answer:
Retiring the oldest bond
Explanation:
Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan
Answer:
The predetermined manufacturing overhead rate per direct labor hour will be $32
Explanation:
The formula to compute the predetermined manufacturing overhead rate is shown below:
= (Estimated manufacturing overhead) ÷ (Estimated direct labor hours)
where,
Estimated manufacturing overhead = Wages of factory janitors + Utilities for factory + Rent on factory building
= $39,900 + $17,000 + $13,900
= $70,800
And, the estimated direct labor hours is 2,200 machine hours
Now put these values to the above formula
So, the value would equal to
= $70,800 ÷ 2,200 machine hours
= $32.18
Answer:
A. $37,400 unfavorable
Explanation:
With regards to the above, variable overhead spending variance is computed as
= (Actual hours × Actual rate) - (Actual hours × standard rate)
= $649,400 - ( 34,000 × $18)
= $649,400 - $612,000
= $37,400 unfavorable
Therefore, Warp's variable overhead spending variance for the month of September is $37,400 unfavorable