BUSINESS COLLEGE

Beverly Company has determined a standard variable overhead rate of $3.10 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,250 actual direct labor hours in the production of 2,600 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.

Answers

Answer 1

Answer:

Answer:

Variable overhead rate variance = $ 875 favorable

Variable overhead efficiency variance = $ 4,185 favorable

Variable overhead cost variance = $5,060 Favorable

Explanation:

Standard hours = 1 hr x 2600 units = 2600 hours

Standard rate = $3.10

Actual hours = 1,250 hours

Actual rate = $2.40

Variable overhead rate variance = ( Standard Rate - Actual Rate ) x Actual Hrs

= ( $ 3.10 - $2.40 ) x 1250 Hrs

= $0.7 x 1250

=$ 875 favorable

Variable overhead efficiency variance = (Standard hours - Actual hours) x Standard Rate

= (2600 - 1250 ) x $ 3.10

= $ 4,185 favorable

Variable overhead spending variance = Variable overhead rate variance + Variable overhead efficiency variance

= $875 + $4,185

= $ 5,060 favorable

Variable overhead cost variance = Standard cost - Actual Cost

= (2600 X 3.10) - (1250 X 2.40) = 8,060 - 3000

= $5,060 Favorable

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Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $ 1.06 billion. The country collected $ 1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance

Answers

Answer:

The formula to calculate the Budget Balance is

Government Income - Government Expenditure

in this case

$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million

Explanation:

A budget balance is reached when a government expenditures are equal to it's income.

In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.

Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.

Daisy, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Daisy. If the auditors determine that a valuation allowance of $30,000 must be placed against Daisy's deferred tax assets, what is Daisy's total book tax expense

Answers

Answer:

$190,000

Explanation:

Calculation for total book tax expense

Using this formula

Total book tax expense=Total book tax expense+Valuation allowance

Let plug in the formula

Total book tax expense=$160,000+$30,000

Total book tax expense=$190,000

Therefore Daisy's total book tax expense will be $190,000

"Using your favorite search engine, the resources of your library, and information available on the Uber Web site, identify and evaluate the protections provided to riders who use the service. Summarize your findings in a report of about 200 words."

Answers

Explanation:

All drivers background are checked before they take the first drive considering the safety aspect of Riders.

Minimize the time that the rider waits with phone. Instead wait for the driver to reach your place which would be notified by tracking his path through map

Emergency button that exists, will alert the securities about the threat that the rider got.

The insurance that is covered and can be used during accidents

Be a back-seat rider so that you exit from the ride on an emergency

Wear your seat belt always to stay safe

Share the trip details with your family members so that they can track the path on an emergency.

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there is at an annual rate of . In year one, $72.00 will buy baskets, and in year two, $72.00 will buy baskets. This example illustrates that, as the price level falls, the value of money . rises,falls,remains the same

Answers

Answer:

From Year 1 to Year 2 : There is annual deflation 11.11%

As price falls, value of money rises

Explanation:

Given : Commodity Basket Cost = $9 in Year 1 ; Commodity Basket Cost = $8 in Year 2

From Year 1 to Year 2 : There has been fall in price level. Proportionate (%) Fall in price level = Change in Price / Old Price x 100

So, Fall in price level = [ ( 9 - 8 ) / 9] x 100 = 1/9 x 100 = 11.11%

Hence, from year 1 to year 2 : there has been 11% fall in price i.e Deflation

Considering Income = $72 :

Year 1 : It can purchase 72 / 9 = 8 commodity baskets
Year 2 : It can purchase 72 / 8 = 9 commodity baskets

So, it illustrates that : As price falls, the purchasing power of money (value of money) rises.

Opportunity cost is not just about monetary cost; it includes anything other than the price of a good that a consumer gives up in order to buy his or her good of choice. Looking to invest in his first pair of dress shoes, Sean is deciding between a pair of slip-on shoes and a pair of traditional lace-up wingtips. In this case, the slip-ons cost $50 more than the Wingtips. Which of the following should be included in the opportunity cost of buying the slip-ons? Included in the Opportunity Cost
i. the classic look of traditional wingtips
ii. the savings that would come from buying the wingtips the money
iii. the no-lace convenience of slip-ons
iv. the pride that comes with wearing the more expensive shoes

Answers

Final answer:

Opportunity Cost refers to potential gain given up by choosing one option over others. For Sean, this includes the vintage look of wingtips and the saved $50 if he chooses slip-ons instead of wingtips. The convenience and pride Sean gets from the slip-ons don't count as Opportunity Cost since they are benefits, not losses.

Explanation:

The concept of Opportunity Cost in economics and business refers to the loss of potential gain from other options when one option is chosen. In Sean's case, the Opportunity Cost of buying the more expensive slip-ons shoes includes:

The classic look of traditional wingtips: Sean gives up the vintage statement a lace-up wingtips may offer;
The savings that would come from buying the wingtips: Sean would spend $50 extra buying the slip-ons than if he chose the wingtips;

However, the last two points: 'the no-lace convenience of slip-ons' and 'the pride that comes with wearing the more expensive shoes' do not fit into the Opportunity Cost. They instead are perceived benefits of the chosen slip-ons and not what is given up when he chooses that option.

Learn more about Opportunity Cost here:

brainly.com/question/32971162

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You purchase a raffle ticket to help out a charity. The raffle ticket costs $5. The charity is selling 2000 tickets. One of them will be drawn and the person holding the ticket will be given a prize worth $4000. Compute the expected value for this raffle.