Answer:
Price variance will be $4512.5 ( Unfavorable )
Explanation:
We have given standard material cost per yard = $2
Actual material cost per yard = $2.10
Standard yards per unit = 4.5
And actual yards per unit = 4.75
Units of production = 9500
Total number of actual quantity used = 9500×4.75 = 45125
So direct material price variance = ( standard price - actual price ) × actual quantity used = ( $2 - $2.1 ) × 45125 = -$4512.5
So price variance will be $4512.5 ( Unfavorable )
Answer: c. Decline is reversible at the crisis stage, whereas it is irreversible at the dissolution stage.
Explanation: Crisis Stage; at this stage decline is still reversible if the
organisation reorganizes it ways of operations or conducting business. What they can do at this point is to carryout cutbacks and layoffs which would help reduce it's financial burden and create additional capital to run the business. At the dissolution stage nothing can be done anymore to salvage the company as it would have run into bankruptcy and would need to fold up.
Answer:
Cost Debit Credit
Work in Process inventory $574,000
Manufacturing overhead $163,000
Wages payable/Cash $737,000
$553,950 is the total cost of the production.
Explanation:
In the table attached the various factors are explained
The total production, direct labour, total direct labour hours per unit and the total cost is calculated.
The total production of standard production for 3 months is calculated as (30,000*$15)=$450,000
the total production of deluxe product is calculated as (6,930*$15)=>$103,950
then the sum is found to get the total cost that is $553,950.
Answer and Explanation:
The preparation of an income statement under variable costing is shown below:-
Income statement under variable costing
ACES INC
Sales $558,600
(5,700 × $98)
Less:
Cost of goods sold
Variable product cost $147,060
($25.80 × 5,700)
variable selling administrative
expenses ($2.80 × 5,700) $15,950
Less: Total variable cost $163,020
Contribution margin $395,580
Less: Fixed overhead cost $93,840
Less: Fixed and selling
administrative expenses $66,000
Net income $235,740
