Answer:
Overhead costs
Explanation:
When high overhead costs are recognised before project starts there will be a need to manage them. Since overhead cost increase as duration of project increases, reduction in project duration will go a long way in reducing cost incurred.
Overhead costs can include wages, rent, utility bills, maintenance costs and so on. They can also be reduced when costs that are not adding value is recognised.
Answer:
Total material price variance= $380 favorable
Explanation:
Giving the following information:
Material A:
Purchase= 1,000 units
Purchase price= $2.1
Standard price= $2
Material B:
Purchase= 2,400 units
Purchase price= $2.8
Standard price= $3
<u>To calculate the total material price variance, we need to use the following formula on each material:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
<u>Material A:</u>
Direct material price variance= (2 -2.1)*1,000
Direct material price variance= $100 unfavorable
<u>Material B:</u>
Direct material price variance= (3 - 2.8)*2,400
Direct material price variance= $480 favorable
Total material price variance= -100 + 480
Total material price variance= $380 favorable
Answer:
pooled task interdependence.
Explanation:
This is the most interdependent type. Although each business unit accomplishes separate tasks, they provide contributions to the main common goal. If one part fails, the whole project or goal may also fail. While working independently, team members still share loose or unstructured responsibilities to achieving goals.
Answer:
Journal Entries
Explanation:
The journal entries are as follows
1. Cash $432,000
To Bonds payable $400,000
To Premium on bond payable $32,000
(Being the issuance of the bond is recorded)
The premium on bond payable is computed below:
= $400,000 ÷ $100 × $8
= $32,000
The $8 comes from $108 - $100
2. Bond payable $400,000
Premium on bond payable $27,809
To Cash $412,000 ($400,000 × 103%)
To Gain on bond redemption $15,809 ($432,000 - $4,191 - $412,000)
(Being the retirement of the bond is recorded)
Answer:
A) $6194
Explanation:
Price before discount = $88,000
discount rate = 7%
Amount of discount = 7% *$88,000 = $6,160
Price after discount = Price before discount - Amount of discount
= $88,000 - $6,160
Price after discount = $81,840 (this is the price included in depreciation)
Items included in total cost of machinery;
Price of machinery after discount = $81,840
Shipping cost = $400
Sales tax = $4,700
Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940
Depreciation per year = (Total cost of the machinery - salvage value) / useful life
= (86,940 - 25,000)/ 10
= 61,940/10
= 6,194
Therefore annual depreciation = $6,194
