Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was an unfavorable materials price variance of $380 and a favorable materials quantity variance of $120. Based on these variances, one could conclude that:

Answers

Answer 1
Answer:

Answer:

The actual usage of materials was less than the standard allowed.

Explanation:

Based on these variances, one could conclude that the actual usage of materials was less than the standard allowed because the Company planned to produce 3,000 units of its single product during November in which the standards for one unit of the product specify six pounds of materials at $0.30 per pound but at the end the Actual production in November was 3,100 units instead of 3,000 unit which was planned .

Therefore Materials quantity variance = (AQ - SQ) SP.

A favorable materials quantity variance can occurred in a situation where the actual usage of materials was less than the standard allowed which is AQ < SQ.


Related Questions

For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian burger costs $3. When deciding how much of each good to buy, Maria knows that 2 salads and 4 vegetarian burgers will give her a utility of 8. Maria’s utility-maximizing point is:A. 6 salads, 1 vegetarian burgerB. 4 salads, 6 vegetarian burgersC. 3 salads, 6 vegetarian burgersD. 2 salads, 8 vegetarian burgers
A company holds $40,000 of 7% bonds as a held-to-maturity security. Assuming all prior interest entries have been accounted for, the bondholder's journal entry to record receipt of the semiannual interest payment includes a debit to Cash for $2,800 and a credit to Interest Revenue for $2,800. True False
Monitoring Central Bank Intervention1) How can your business be affected if the Fed attempts to strengthen the dollar in the for-eign exchange market?2) If the Fed decides to weaken the dollar, how will your business be affected?3) How can indirect central bank intervention affect your business even if there is no impact on exchange rates?
Suppose that on August 14, 2019, an antique woven rug handmade in Canada is priced at CAD 1,100. The approximate U.S. dollar price of the rug would be
Sayid is the sole shareholder of an S corporation in Hattiesburg, Mississippi. At a time when his stock basis is $20,000, the corporation distributes appreciated property worth $40,000 (basis of $20,000). There is no built-in gain. Sayid's taxable gain is:

Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)Required:

What is her after-tax rate of return for the City of Heflin bond?
How much explicit tax does Melinda pay on the City of Heflin bond?
How much implicit tax does she pay on the City of Heflin bond?
How much explicit tax would she have paid on the Surething Inc. bond?
What is her after-tax rate of return on the Surething Inc. bond?

Answers

Answer:

What is her after-tax rate of return for the City of Heflin bond?

  • Melinda's after tax rate of return for the City of Heflin bonds = $200,000 x 6% = $12,000. Interest revenue from city bonds is not taxed.

How much explicit tax does Melinda pay on the City of Heflin bond?

  • $0

How much implicit tax does she pay on the City of Heflin bond?

  • $4,000. The tax difference between the yields of the city bond vs Surething bond.

How much explicit tax would she have paid on the Surething Inc. bond?

  • ($200,000 x 8%) x 25% = $4,000

What is her after-tax rate of return on the Surething Inc. bond?

  • ($16,000 - $4,000) / $200,000 = $12,000 / $200,000 = 6%

A put and a call have the following terms: Call: strike price $50 expiration date six months Put: strike price $50 expiration date six months The price of the stock is currently $55. The price of the call and put are, respectively, $9 and $1. What will be the profit from buying the call or buying the put if, after six months, the price of the stock is $40, $50, or $60?

Answers

Answer:

* Profit from buying the call with strike price of $50 after six months if:

- The stock price is $40: -$9

- The stock price is $50: -$9

- The stock price is $60: $1

* Profit from buying the put with strike price of $50 after six months if:

- The stock price is $40: $9

- The stock price is $50: -$1

- The stock price is $60: -$1

Explanation:

It is useful to recall that the call's buyer has the right but not the obligation to buy an underlying asset at strike price at expiration date; while the put's buyer has the right but not the obligation to sell an underlying asset at strike price at expiration date.

Explanation for each circumstances:

*Profit from buying the call with strike price of $50 after six months if:

- The stock price is $40: Do not exercise the call option as investor can buy from the market at $40 instead at the strike price of $50. Thus, investor will recognize a loss of $9 from buying the option.

- The stock price is $50: Market price is equal to strike price, investor will recognize a loss of $9 from buying the option.

- The stock price is $60: $1. Investor buy at strike price $50, sell in the market for $60 to get profit of $10, minus option price of $9, net gain is $1.

* Profit from buying the put with strike price of $50 after six months if:

- The stock price is $40: Investor buy from market at $40, sell through put option at $50, recognized the profit of $10. Net gain will be determined by further deducting of option price $1, to come at $9.

- The stock price is $50: Market price is equal to strike price, investor will recognize a loss of $1 from buying the option.

- The stock price is $60: Investor ignore the option as it can sell at market price of $60 instead of strike price $50. Net loss is option price $1.

The opening balance of Company A is 25,000, and the repayment is scheduled for 1,000 per month at an annual interest rate of 5%. Use the average debt balance to calculate the interest payment. The closing balance of debt at the end of the month is _____ and the interest payment is _____.

Answers

Answer:

Closing balance of debt at the end of the month = $24,000

Interest payment = $102.08

Explanation:

The computation of closing balance of debt at the end of the month and the interest payment is shown below:-

Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month

= $25,000 - $1,000

= $24,000

Interest payment =  Average Debt × Annual interest rate × 12 months

= (($25,000 + $24,000) ÷ 2) × 0.05 ÷ 12  months

= $102.08

Therefore we have applied the above formulas.

Final answer:

To calculate the interest payment, find the average debt balance by adding the opening and closing balance and dividing by 2. Then, multiply the average debt balance by the monthly interest rate to get the interest payment.

Explanation:

To calculate the interest payment using the average debt balance, we need to calculate the average debt balance for the month. To do this, we add the opening balance and closing balance of debt and divide them by 2. In this case, the opening balance is $25,000 and the closing balance is the repayment of $1,000. So the average debt balance is $(25,000 + 1,000) / 2 = $13,000.

Next, we calculate the interest payment by multiplying the average debt balance by the annual interest rate and dividing it by 12 (since it's a monthly payment). The annual interest rate is 5%, so the monthly interest rate is 5% / 12 = 0.41667%. Therefore, the interest payment is $13,000 × 0.41667% = $54.17 (rounded to the nearest cent).

SUID or SGID special permissions are represented with this letter in the user or group owner's execute position.s

Answers

SUID or SGID special permissions are represented with this letter in the user or group owner's execute position is S

What is SUID and SGID?

  • SUID: It is special file permission for executable files. This enables other users to run the file with the effective permissions of the file owner. But Instead of normal x which represents executable permissions. We will see s(this indicates SUID) special permission for the user.

  • SGID: This is also special file permission for executable files that enables other users to inherit the effective GID(Group Identifier) of a group owner. Here rather than x which represents executable permissions, we will see s(which indicates SGID) special permission for group users

Learn more about SUID and SGID refer:

https://www.geeksforgeeks.org/finding-files-with-suid-and-sgid-permissions-in-linux/

#SPJ4

According to Ghemawat's earlier observations of CAGE phenomena related to countries and relative distances measured with the framework, countries who share a common currency have a greater probablity of trading with each other than countries who share a common border.a. True
b. False

Answers

Answer:

According to Ghemawat's CAGE framework, "countries who share a common currency have a greater probability of trading with each other than countries who share a common border."

a. True

Explanation:

The CAGE framework was developed by an international strategy guru, Pankaj Ghemawat.  CAGE is a cultural, administrative, geographic, and economic framework.  The framework offers businesses a means to evaluate the non-physical distances that exist between countries. With this more-inclusive view of distance, the CAGE framework provides another way for business to consider the location, opportunities, and risks involved in global trade or arbitrage.

Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income

Answers

Answer and Explanation:

The computation is shown below:

1.  

Selling Price = Sales ÷  Units Sold

Current Selling Price = $385,000 ÷  5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000  

2.  

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales                     $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost          -$94,000

Net Income               $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

Comparing two scenarios for Carla Vista Company: one of increasing the selling price by 10%, and the other of reducing the variable costs to 56% of sales, the former scenario of increasing the selling price provides a higher net income and is the better strategy.

The question asks us to calculate the net income under two different scenarios for Carla Vista Company, and then determine which option produces the higher net income.

To do this, we first need to understand the company's current situation.

Its current net income is calculated as follows: Sales ($385,000) - Variable Costs ($250,000) - Fixed Costs ($94,000) = $41,000.

Under the first alternative, management plans to increase the selling price by 10% without any changes in total variable costs or units sold.

So the new sales figure will be $385,000 + 10% of $385,000 = $423,500.

The net income then becomes: New Sales ($423,500) - Variable Costs ($250,000) - Fixed Costs ($94,000) = $79,500.

Under the second alternative, management plans to reduce variable costs to 56% of sales.

So, the new variable costs will be 56% of $385,000 = $215,600.

The net income then becomes: Sales ($385,000) - New Variable Costs ($215,600) - Fixed Costs ($94,000) = $75,400.

Comparing the two alternatives, we see that the first alternative, increasing the selling price by 10%, gives a higher net income and should thus be the advisable course of action.

Learn more about Net Income here:

brainly.com/question/35177323

#SPJ3