the direct labor efficiency variance by subtracting the standard hours for units produced (50,000) from the actual hours used (48,000) and multiplying that by the standard rate per hour ($14.00). This gives us a result of $28,000 unfavorable. The correct option B) $28,000 unfavorable
The direct labor efficiency variance measures the difference between the actual hours used and the standard hours that should have been used based on the units produced.
In this case, the actual hours used were less than the standard hours for units produced, which may indicate that the company was not using its labor resources efficiently. Additionally, the actual rate per hour was higher than the standard rate per hour, which could be a contributing factor to the unfavorable variance.
A favorable variance indicates that the company is using its labor resources efficiently and/or paying a lower rate per hour than expected. On the other hand, an unfavorable variance suggests that the company is not using its labor resources efficiently and/or paying a higher rate per hour than expected.
In this case, the $28,000 unfavorable variance implies that the company needs to improve its labor efficiency and/or negotiate better rates with its employees. Therefore, The correct option B) $28,000 unfavorable
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complete question
the following information describes a company's usage of direct labor in a recent period. the direct labor efficiency variance is: actual hours used 48,000 actual rate per hour$15.00 standard rate per hour$14.00 standard hours for units produced 50,000 multiple choice A) $48,000 unfavorable. B) $28,000 unfavorable. C) $28,000 favorable. D) $20,000 unfavorable. E) $48,000 favorable.
Answer:
Break-even point= 713 car washes
Explanation:
Giving the following information:
For December he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full-service car wash costs $10.50. Unit variable costs per car wash are $2.50.
First, we need to calculate the total fixed costs:
Fixed costs= rent + utilities + salaries + advertising
Fixed costs= 2,000 + 700 + 2,950 + 50= $5,700
Now, using the following formula, we can calculate the break-even point in units:
Break-even point= fixed costs/ contribution margin
Break-even point= 5,700/ (10.5 - 2.5)= 713 car washes
c. social complexity.
d. path dependence.
Answer:
d. path dependence
Explanation:
Based on the scenario being described within the question it can be said that this is best illustrating the concept of path dependence. This term refers to how the set of decisions that individuals face is limited due to decisions that they have made in the past that will influence them, even though the past circumstances may no longer be relevant. As is the case in this scenario as Iceberg storage decided to stick with physical devices because it is what they did in the past and it worked out for them, but since times changed it did not work out this time.
Answer:
D
Explanation:
Path dependence
Path dependency occurs because it is often easier or more cost-effective to continue along an already set path than to create an entirely new one.
While most of Iceberg's competitors were shifting away from physical data storage devices toward online cloud storage services, Iceberg invested most of its retained earnings in the effort to improve its hard drives. Iceberg should have shifted away this is a case of path dependence
Answer:
budget slack.
Explanation:
A budget slack refers to a deliberate over estimation of expenses or under estimation of revenues. Either way, the person presenting the budget will try to lower their estimated profit or try to obtain more money for their department or division.
In this case, Karren is over estimating the expenses of her department. Probably she wishes to receive a larger amount of money in order to increase her department's activities. If she is able to pull it out, she will receive the credit for increasing sales, but if her department is not able to increase total sales even with a larger budget, it will be her responsibility.
Answer:
D) Earnings before deductions for interest, depreciation, income taxes, and amortization (EBIDTA)
Explanation:
The earnings before interest, taxes, depreciation, and amortization (EBITDA) is used to compare different projects' profitability since it doesn't consider financial interest, taxes and depreciation. It also gives shareholders and potential investors a vision of the operating performance of the business.
When you are considering investing in a new or existing project, you don't have to consider the source of the funds for the project, that is why cash flow calculations don't account for interest payments and depreciation is just considered for taxation purposes. The same applies for the EBITDA calculation.