Answer the following questions using the information below: Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a batch of the cars, Munoz, Inc., must set up the machines and molds. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and molds for different styles of car. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to June 2011: Actual Amounts Static-budget Amounts Units produced and sold 15,000 10,000 Batch size (number of units per batch) 250 200 Setup-hours per batch 5 5.2 Variable overhead cost per setup-hour $40 $38 Total fixed setup overhead costs $12,000 $9,880 Calculate the efficiency variance for variable setup overhead costs.
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1900 Favorable
Explanation:
Efficiency Variance(Standard Hours-Actual Hours)*Standard rate
(15000/225*5.25- 15000/250*5)*38=1900F
O None of these answers are correct.
Explanation:
The computation of the direct manufacturing labor efficiency variance is shown below;
= Standard labor rate × (Standard hours for actual output - Actual hours)
where,
Standard labor rate is $15
Standard hours for actual output would be
= 10,000 containers × 0.05 hours
= 500 hours
And, actual hour is 500 hours
Now put these values to the above formula
So, the value would equal to
= $15 × (500 hours - 500 hours)
= $0
Crestview BEP 200 persons
Tallgrass BEP 255 persons
Explanation:
common fixed cost:
admin and marketing 1800
band to play music 800
2,600
selling price oer person $30
Break even point:
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
Crestview:
[tex]\frac{2,600 + 1,000}{30-12} = Break\: Even\: Point_{units}[/tex]
[tex]200 = Break\: Even\: Point_{units}[/tex]
Tallgrass:
[tex]\frac{2,600 + 3,000}{30-8} = Break\: Even\: Point_{units}[/tex]
[tex]254.54 = Break\: Even\: Point_{units}[/tex]
If the stand-alone method would be used the startup would pay $60,000.00.
Step-by-step explanation:
The current cost for Spring Harbor Corporation is $180,000.00, but they use only 70% of the corporate suite.
If the start-up divide the corporate suite, they will use only 30%, but the total cost will be 180,000.00 + 20,000.00 = 200,000.00
We add the values because 180,000.00 counts the cost of maintenance paid before.
Using the percentages to find the cost for the start-up:
[tex]200000*\frac{30}{100} = 60000[/tex]
So, $60,000.00 will be allocated to the start-up business.
The variances for Materials A can indicate that the business purchases a lower quality materials, therefore cheaper.
Explanation:
The variances for Materials A can indicate that the business purchases a lower quality materials, therefore cheaper.
Which produce a favorable price variance because, this lower quality had a lower price per unit of material.
This lower quality makes the manufacturing process use more materials, generating an unfavorable quantity variance as, the the standard materials would use less quantity.