12) A favorable labor rate variance is created A) actual units produced exceed standard hours allowed H)actual wages paid are less than amounts that should have been paid for the number of hours worked C) actual units produced exceed budgeted production levels D) actual labor hours worked exceed standard hours allowed E) actual hours worked are less than standard hours allowed.

12) A favorable labor rate variance is created A) actual units produced exceed standard hours allowed H)actual wages paid are less than amounts that should have been paid for the number of hours worked C) actual units produced exceed budgeted production levels D) actual labor hours worked exceed standard hours allowed E) actual hours worked are less than standard hours allowed.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 8MC

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Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 Standard direct labor hours allowed (SQ) 63,000 Total payroll for direct labor $ 774,900 Direct labor efficiency variance $ 18,000 The actual direct labor rate per hour (AP) for February, rounded to two decimal places, was:
All of these statements about the production function are true EXCEPT a) the curve features 3 distinct regions: increasing returns to scale, constant returns to scale, and diminishing returns to scale. b)the curve's shape matches and its description of the interaction between the graph's axes represents the law of diminishing returns c) it can be applied to many economic markets d) one variation is used to show the difference between firm and market specific risk
State whether actual (A) or estimated (E) costs are more likely to be used to carry out the following activities: calculate taxes, make bids, pay bonuses, determine profit or loss, predict sales, set prices, evaluate proposals, distribute resources, plan production, and set goals.
Handy Company production budget for the year ended November 30, 2022 in Department C was based on 200,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year and the fixed overhead rate was estimated to be $3 per unit. Both fixed and variable overhead are applied to the product on the basis of direct labor hours. The actual data for the year ended November 30, 2022 are:Actual production in units = 198,000 Actual direct labor hours = 440,000 Actual variable overhead = $352,000 Actual fixed overhead = $575,000a. What were the standard hours allowed for actual production for the year ended November 30, 2022?b. What was the VOH efficiency variance for the year? c. What was the VOH spending variance for the year?d. What was the FOH spending variance for the year?e. What was the FOH applied to Mooven's production for the year? f. What was the FOH production volume variance for the year?
If a firm has economies of scope, which of the following would best decribe what the firm is experiencing? (a) The firm is experiencing internal economies of scale. (b) The firm is experiencing internal diseconomies of scale. (c) The firm is experiencing external economies of scale. (d) The firm is experiencing external diseconomies of scale.
Total variable cost is 0 at zero level of production True/Falss
ACME Inc. currently sells a product for $1,100 which results in demand being 2,000 units. Management is considering increasing the price to $1,150 however a price increase will result in a decrease in demand by 200 units. The product has the following cost structure per unit: Direct material $38.00 Direct labour $12.00 Direct expenses $25.00 Variable overheads $15.00 Fixed overheads $50.00 Variable selling expense $10.00 Fixed selling expenses $75.00 Management wants to know is optimal production quantity and its maximum profits. Required: (a) Determine the price equation. (b) Determine the optimal price and quantity. (c) Determine the optimal profits
Quikpak sells returnable containers to major food processors. The price received for the containers is Khs.300 per unit. Of this amount Khs.187.5 is profit contribution. Quikpak is considering an attempt to differentiate its product through quality improvement at a cost of Khs.75 per unit. Current profits are Khs.6M on sales of 100,000 units. Assuming that average variable costs are constant at all output levels, find Quikpak’s total cost function before the proposed change. Calculate the total cost function if the quality improvement is implemented. Calculate Quikpak’s break-even output before and after the change, assuming it cannot increase its price. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to Khs. 6.75M.
Which of the following best defines a sunk cost? A. Costs that have already been incurred and cannot be recovered. B. The variable costs associated with increasing production. C. The total costs including both fixed and variable costs. D. Future costs that are expected to be incurred as a result of current decisions.
Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is contemplating giving up his job and set up his own tax consultant firm. He estimates that renting an office would cost RM 780 per month, hiring a secretary with salary RM 1,500 per month and purchasing for required supplies would cost him RM 10,000 per annum. He estimated that his total revenues for the year would be RM 120,000. a)Define the explicit cost and implicit cost
An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200 (B). Each model uses one circuit board, of which there are only 2,500 available for this week’s production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm’s goal is to maximize profits.What is the time constraint?
The following information was gathered by the managerial accountant to estimate the 2nd quarter's utility cost: Months Utility Cost Direct labor hours January ₱8,520 1809 February ₱7,628 1421 March ₱5,712 912 April ₱6,746 1102 Summation of X 5,244 Summation of Y 28,606 Summation of XY 38,895,504 Summation of X-squared 7,337,870 Using the regression analysis, what is the estimated cost-function for the 2nd quarter?