Answers
Answer:
$600 unfavorable
Explanation:
The budgeted cost of producing 14,000 units at $5.50 per unit and with fixed costs of $19,400 is:
The variance is given by subtracting the budgeted cost by the actual cost ($97,000):
Since the variance is negative, the variance is unfavorable
Related Questions
Dana wants to give Fleesum's employees more freedom to schedule when they begin and end their work days. Her plan still requires employees to work eight hours per day, but allows them to start as early as 7:00 a.m. or as late as 9:00 a.m., and leave as early as 4:00 p.m. or as late as 6:00 p.m. Her plan also requires all workers to be on the job between 9:00 a.m. and noon, and between 2:00 p.m. and 4:00 p.m. The type of plan Dana wants to implement is known as a:
g On January 1 the company had office supplies costing $2,700 recorded as an asset. During the year $9,600 of office supplies were purchased and recorded as an asset, but the company did not make any journal entries to record the use of supplies during the year. The physical count on December 31 revealed that supplies of $3,100 were remaining. What adjusting entry would be necessary on December 31
Which of the following could be considered a cost driver? Select one: a. A service provided by an architecture firm b. A product produced by a manufacturer c. A tax return prepared by a local CPA firm d. All of the above
What is the most appropriate decision on a product line when a company decides to lengthen its product line beyond its current range
Answers
Answer:
The expected return for securities with maturities of two, three, and four years is as follows:
Expected Return 2 year Security=4.50 %
Expected Return 3 year security=6 %
Expected Return 4 year security=7.25 %
Explanation:
According to the expectations hypothesis theory, the expected return for the 2 year security is the average of the expected yields of two one-year T-bills, for the 3 year security is the average of the expected yields of three one-year T-bills and the 4 year security is the average of the expected yields of the four one-year T-bills.
Therefore, in order to calcuate the expected return for each year we have to use the following formula:
Expected Return 2 year Security=(4 + 5) / 2 = 4.50 %
Expected Return 3 year security=(4 + 5 + 9) / 3 = 6 %
Expected Return 4 year security=(4 + 5 +9 + 11) / 4 = 7.25 %
• Car loan, 6% interest rate, $10,000 balance, $295 per month
• Department store card, 28% interest rate, $600 balance, minimum payment 5% of balance
• Discover Card, 12% interest rate, $2,000 balance, minimum payment 2% of balance
• VISA Card, 13% interest rate, $3,000 balance, minimum payment 2% of balance
• MasterCard 1, 14% interest rate, $4,000 balance, minimum payment 2% of balance
• MasterCard 2, 14% interest rate, $0 balance, minimum payment 2% of balance
• Gasoline card, 21% interest rate, $300 balance, minimum payment 5% of balance
Assume all credit cards will assess a $35 late fee and ongoing penalty interest of 8% above the currentrate if you miss a payment. Your recent VISA card statement came with a blank cash advance check(for up to $10,000) with terms of 23.99% APR and a fee of 3% if you use it. Your recent MasterCard 2statement came with a balance transfer oFer (up to $4,000) with no fee and 0% APR for 12 months,after which the normal interest rate applies. You recently found an incorrect amount charged on yourVISA card from a store you frequent often. You’d like to come up with a plan to eliminate all of yourcredit card debt.
In general, is it a good idea to make only minimum payments on your credit cards?
Yes, you can invest the money saved each month to earn interest.
No, it will cause your interest rate to go up.
No, the small payment requirement is mathematically guaranteed to keep you in debt for manyyears.
Yes, this allows you more ±exibility in your cash budget.
Assuming you have $1,500 in your budget this month with which to pay down your credit cards, howmuch should you pay on each card?
CardInterestrateOutstandingRequired minimumRecommendedbalancepayment(%)payment($)debtrepaymentamount
store card
Discover Card12%2,0008%
VISA Card13%3,00010%
MasterCard 114%4,0008%
MasterCard 214%010%
Gasoline card21%30015%
Total$9,900$1,500
Answers
Answer:
1) In general, is it a good idea to make only minimum payments on your credit cards?
- No, the small payment requirement is mathematically guaranteed to keep you in debt for many years.
All you have to do is analyze the interest rates charged by the credit card companies and it is really difficult for any investment to match those interest rates.
2) Assuming you have $1,500 in your budget this month with which to pay down your credit cards, how much should you pay on each card?
I would start with the cards that charge the highest interest rates. I would pay the full balance of the department store card and the gasoline card = $600 + $300 = $900
Since I have $600 left, I would then pay the minimum payments for the cards that charge the least interest rates. I would pay $40 to Discover card and $60 to VISA.
The remaining $500 would be used to pay MasterCard 1 card and lower its balance.
Final answer:
It's not best practice to only make minimum payments on credit cards, as it results in long-term debt due to the compounding of interest. Prioritize your $1,500 payment towards cards with higher interest rates first and consider using the balance transfer offer on MasterCard 2 judiciously.
Explanation:
This question pertains to managing credit cards and consumer loans. In this specific scenario, it's generally not a good idea to only make minimum payments on credit cards. Only making minimum payments could keep you in debt for many years due to the compounding effect of interest.
To prioritize debt repayment with an available budget of $1,500 to pay down on credit cards this month, you should start by paying off the credit card with the highest interest rate first. This strategy is known as the avalanche method. So, you would begin with the Department store card (28% interest rate) and gasoline card (21% interest rate), and then move on to MasterCard 1 (14% interest rate), VISA card (13% interest rate), and Discover Card (12% interest rate).
The balance transfer offer from MasterCard 2 could be beneficial. As it offers a 0% APR for 12 months, you could transfer some of the balance from the cards with high interest rates to MasterCard 2. However, this should only be done if you are confident that you can pay off the transferred balance within the promotional period of 12 months, as otherwise, interest would revert to the regular rate.
Learn more about Debt Repayment Strategy here:
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Answers
Calculating CLV is most helpful for Assessing the viability of any pricing strategy.
The correct option is B
What is customer lifetime value?
The total amount of money a client is anticipated to spend with your company or on your products over the course of an average business relationship is known as customer lifetime value.
If you can reach a CLV that is between three and five times your cost per new customer, it is a good range. Therefore, you should strive for a CLV of at least $450 if you are investing an average of $150 in acquiring a new customer.
The formula for customer lifetime value is: CLV = Average Transaction Size x Number of Transactions x Retention Period.
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I understand that the question you are looking for is:
Calculating CLV is most helpful for which of the following?
(A) Opening a new retail location
(B) Assessing the viability of any pricing strategy
(C) Estimating demand for a product
(D) Calculating research investment for a new product
Answers
Corporate limited liability refers to a legal concept that separates the assets and liabilities of a corporation from those of its owners (shareholders). In essence, it means that the personal assets of shareholders are protected from the debts and liabilities of the corporation.
If the corporation incurs losses or is faced with legal claims, the shareholders are generally not personally responsible for covering these losses beyond the extent of their investment in the company. Their liability is limited to the amount they have invested in the form of shares.
This protection encourages individuals to invest in corporations without fear of losing their personal assets in case the company faces financial difficulties or legal issues.
However, it's important to note that limited liability does not shield shareholders from all liabilities; there are exceptions, such as instances of fraud or illegal activities.
Nevertheless, for most business activities, limited liability is a fundamental principle that encourages entrepreneurship and investment in corporate entities while mitigating personal financial risk for shareholders.
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Answer: the extent of the assets of the corporation. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.
Explanation:
Product: XV-1
Descriptions Quantity Cost Rate Subtotal Total
Direct materials
Aluminum 4 pounds $25/pound $100
PVC 1 pound 40/pound 40
Direct labor 5 hours 40/hour 200
Variable factory overhead 5 hours 12/hour 60
Total variable manufacturing cost $400
Fixed factory overhead 5 hours 24/hour 120 120
Standard manufacturing cost per unit $520
Standard variable selling and administrative cost per unit I pound 50
* Budgeted fixed factory overhead cost = $120,000
Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,470 pounds of aluminum to manufacture 935 units. The company paid $28.90 per pound during the month to purchase aluminum. At the beginning of the month, the company had 54 pounds of aluminum on hand. At the end of the month, the company had only 34 pounds of aluminum in its warehouse. Schmidt used 4,400 direct labor hours during the month, at an average cost of $41.90 per hour.
Required:
Compute for the month the following variances:
1. The purchase-price variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).
2. The usage variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).
3. The direct labor rate variance. Indicate whether this variance is favorable (F) or unfavorable (U).
4. The direct labor efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U).
Answers
Answer:
See below
Explanation:
1. Purchase price variance
Standard price per pound = $25
Actual price per pound = $28.9
Quantity of aluminium purchased = Closing inventory + Quantity used - Opening inventory
= 34 + 3,470 - 54
= 3,450 pounds
Purchase price variance = (Standard price - Actual price) × Quantity purchased
= ($25 - $28.9) × 3,450
= -$3.9 × 3,450
= $13,455 (U)
2. Usage variance
Standard quantity of Aluminium for actual production
= 935 units × 4 pounds each
= 3,740 pounds
Usage variance = (Standard quantity of material used - Actual quantity used) × Standard price per unit
= (3,740 - 3,470) × $25
= 270 × $25
= $6,750 (F)
3. Direct labor rate variance
= (Standard rate per hour - Actual rate per hour)
× Actual hours for production
= ($40 - $41.9) × 4,400
= -$1.9 × 4,400
= $8,360 (U)
4. Efficiency variance
Standard hours for actual production
= 935 units × 5 per hour
=4,675 hours
Labor efficiency variance = (Standard hours for actual production - Actual hours for actual production) × Standard rate per hour
= (4,675 - 4,400) × $40
= 275 × $40
= $11,000 (F)
B) maintain low unemployment.
C) raise the standard of living.
D) increase profits and spending.
Answers
the right answer is to increase profits ans spending