Simba Company’s standard materials cost per unit of output is $10.00 (2.00 pounds x $5.00). During July, the company purchases and uses 3,200 pounds of materials costing $16,192 in making 1,500 units of finished product. Compute the total, price, and quantity materials variances. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)
Answers
The quantitative assessment of the discrepancy between planned and actual behavior is known as variance analysis. This study is utilized to keep a corporationunder control by looking into areas where performance has been surprisingly bad.
Note:
Standard cost = SC
Actual cost = AC
Standar rate = SR
Actual rate = AR
Standard Quantity = SQ
Actual Quantity = AQ
Material Cost Varience = MCV
Material Rate Varience = MRV
Material Usage Variance = MUV
1) Computation of Material Cost Variance (MCV)
×
×
2) Computation of Material Rate Variance (MRV)
3) Computation of Material Usage Variance (MUV)
For more information regarding variance costing sums, refer to the link:
Answer:
A)1192 A
B) 192 A
C) 1000 A
Explanation:
The Question is to Compute Simba Company's Total, Price, and Quantity materials Variances
1) Computation of material Cost Variance
= The Standard Cost - The Actual Cost of the material
= 1,500 units x 2 pounds = 3000 pounds
Standard Cost = 3,000 pounds x $5 = $15,000
Therefore material variance = $15,000 - $16,192 = 1192A
2) The material Rate Variance or the Price Variance
= (Standard Rate - Actual Rate) Actual Quantity
= Actual Rae = $16,192 / 3200 = $5.06
Material Rate Variance = (5- 5.06) x 3,200
= 192 A
3) The material Usage Variance or Quantity variance
= (The Standard Quantity - Actual Quantity) Standard Rate
Standard Quantity = 1,500 Units x 2 Pounds = 3000 pounds
Material Usage Variance = (3,000-3,200) 5
= 1000 A
Related Questions
Delivered five rebuilt pianos to customers who paid $14,500 in cash. record the transaction.
A company has the following items on its year-end trial balance:Net sales $500‚000Common stock 100,000Insurance expense 75,000Wages 50,000Cost of goods sold 100,000Cash 40,000Accounts payable 25,000Interest payable 25,000What is the company's gross profit?A. $230‚000B. $500,000C. $400,000D. $275‚000
A home mortgage that can be repaid over a 30-year period is an example of:A. a line of credit.B. a student loan.C. a short-term loan.D. a long-term loan.
20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $2.3 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target 4.6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. Under what circumstances should the company take on the project?
Answers
Answer:
$323,500 shares
Explanation:
A stock split is a practice carried out by a company where stocks are split into multiples of its existing shares to boost liquidity.
There is no actual increase in the value of the shares, just an increase in the number. For example if a shareholder has 100 share and there is a 3-1 split, the shareholder will now have 3 shares for every one held before.
In this scenario total outstanding shares was 64,700 shares. The company offers a 5 for 1 stock split. Each share is now five, so new outstanding shares is 64,700 * 5= 323,500 shares
Answer:
77,640 shares
Explanation:
Stock split occur when new shares of a company are issued to existing shareholders in proportion to their current holdings.
The share outstanding after the stock split is the addition of the existing shares and the new share issued. For this question, this can be calculated as follows:
New shares to be issued = 64,700 ÷ 5 = 12,940
Number of outstanding shares after stock split = 64,700 + 12,940 = 77,640 shares
B) Productivity
C) Earning potential
D) Human capital
Answers
Answer:
earning potential
Explanation:
Earning potential refers to the potential gains from dividend payments and capital appreciation shareholders might earn from holding a stock. In other words, it reflects the largest possible profit that a corporation can make
Final answer:
The top salary one can make is tied to their earning potential, which is influenced by their human capital, including education and skills. Human capital boosts productivity, leading to higher earnings. Investments in human capital can hence increase the long-term earning potential of individuals.
Explanation:
The top salary one can make is often referred to as their earning potential, which is linked to several factors including education, human capital, productivity, and the career path one chooses. Human capital represents the accumulation of knowledge, skills, and experience that a worker possesses, which directly influences their productivity and, consequently, their earning potential. Investing in education and skills development can increase one's human capital, thereby raising their productivity and the ability to earn a higher salary. This can shift a family's budget constraint, allowing them to improve their standard of living, as shown by an increase in hourly wage from $7.25 to $12 in one hypothetical scenario.
An investment in human capital, similar to other forms of investment, includes an upfront cost but can lead to greater benefits in terms of increased productivity and earnings over time. The role of education in enhancing human capital is significant, impacting not only the career one can pursue but also the performance and income one can expect from their labor. Employers value the performance that comes with enhanced human capital, thereby providing more significant benefits and higher wages in line with the increased productivity.
Answers
price per share of the company's stock is $53.28
Explanation:
Under dividend growth model a stock is overvalued or undervalued assuming that the firm’s expected dividends grow at a value g forever, which is subtracted from the required rate of return or k.
Therefore, the stable dividend growth model formula calculates the fair value of the stock as P =D1 / ( k – g ).
P= price per share
D1 = current dividend
k = required return
g = growth rate
P= $3.41 ÷ (11 % - 4.6% ) =( 3.41 ÷ 0.064 )= $53.28
Answers
Answer:
Cyclical Unemployment
Explanation:
Cyclical Unemployment occurs due to irregularities surrounding an economy and these said cycles eventually brings about recession and thus, a good number of willing workers would not be able to get jobs due to this fact. What Joseph is experiencing is called Cyclical unemployment.
Approximately how many hours per year will the solar panels need to operate to enable this project to break even?
Answers
Answer:
It will take 6,534.31 hours per year for the solar panels to operate to enable this project to break even
Explanation:
Discount rate = 30% = 0.3
Looking at one hour of operation in each year = 200 kW x $0.30 Kw/hr
= $60 value of electricity per year
Compound interest factor for a discount rate of 30% = 3.3158
(taken from compound interest factor table or computed using formula ∑1/(1+r)^t , where r = 30%, and t = 1 to 30)
Present value of operating the solar panels for 1 hour per year = 60 × 3.3158 = $ 198.95
For break even it would need to run = 1.3 million ÷ 198.95
= 6,534.31 hours per year
The solar panels need to operate for approximately 236,364 hours per year to enable this project to break even.
To determine the number of hours per year the solar panels need to operate to break even, we can calculate the present value of operating the solar panels for 1 hour per year over the 20-year lifespan of the panels.
The annual operating cost is $0.30 per kWh, and the capacity of the solar panels is 200 kW. So, for each hour of operation, the cost is:
Cost per hour = 200 kW * $0.30/kWh = $60
Now, we'll calculate the present value of this cost over 20 years at a 30% discount rate:
PV Cost = $60 / ≈ $5.50
The university spent $1.3 million upfront to install the panels. To break even, the present value of operating the panels should cover this cost:
$1,300,000 = $5.50 * X
Where X is the number of hours per year the panels need to operate. Solving for X:
X ≈ $1,300,000 / $5.50 ≈ 236,364 hours per year.
for such more question on solar panels
#SPJ3
Answers
Answer: Dwayne's investment will be worth $89,961.02 after the last annuity payment is made.
Since Dwayne contributes $4700 at the beginning of each year, we need to calculate the future value of an annuity due.
We use this formula for our calculations:
Substituting the values we get,