SCHMIDT MACHINERY COMPANY Standard Cost Sheet
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 1
Answer:

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)


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Answers

Answer:

$18,800

Explanation:

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Answers

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Answers

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Answers

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What is market strategies?

A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs and the development of a distinct and long-lasting competitive advantage. It includes everything, from choosing which channels to utilize to contact your customers to figuring out who they are.

Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals.

Thus, You would figure out the most cost-effective approach to send perishables back and forth.

For more information about market strategies, click here:

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Answer:

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Answers

Answer:

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A. Explain the role labor’s productivity plays in wage determination in the competitive labor market. If productivity increases, what happens to wages and why? b. What is meant by the term "compensating wage differentials?"
c. Why is the demand for labor called a "derived demand."

Answers

Answer:

(A)Wages decrease in the long term

Explanation:

(A) The principles of supply and demand applies here.

Higher worker productivity in a particular industry implies increased demand for workers in the industry (short term effect).

Increased supply of workers implies:

1. output per worker increases, resulting in increase in supply of products in the industry. But, the laws of supply and demand comes in, because when supply increases, prices decrease.

That is, the increase in worker productivity may cause a decrease in prices resulting in a decrease in wages since the firm's revenue declined (long term effect).

2. Increase in the supply of workers in the industry with increased in productivity over workers from other industry because of initial increase in wages. This would lead to a decrease in wages because the supply of workers would exceed demand.

(B) The compensation differential is the additional amount of money that a given worker must be offered in order to motivate him to accept a given undesirable job, relative to other jobs that the worker could perform.

(C) This is called a derived demand because it is often based on the demand for products.

For example, when consumers want more of a particular good or service eg clothing, more firms in the industry will want workers that make this product.

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