The following are annual results for Company G: for 202 1: # of hats made: 8000 square meters of cloth used: 12 000 cloth cost: $270000 for 2022 # of hats made: 6000 square meters of cloth used: 10400 cloth cost: $27900 Compared to 2021, the cloth usage in 2022 had an "efficiency" variance of Question 43 options: $3150 U $9 00 U $31500U none of the listed answers are correct Choose the correct option

The following are annual results for Company G: for 202 1: # of hats made: 8000 square meters of cloth used: 12 000 cloth cost: $270000 for 2022 # of hats made: 6000 square meters of cloth used: 10400 cloth cost: $27900 Compared to 2021, the cloth usage in 2022 had an "efficiency" variance of Question 43 options: $3150 U $9 00 U $31500U none of the listed answers are correct Choose the correct option

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 17EB: The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per...

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The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of improving its efficiency. The driver for the activity is number of purchase orders. The following data pertain to the activity for the most recent year: Activity supply: five purchasing agents capable of processing 2,400 orders per year (12,000 orders) Purchasing agent cost (salary): 45,600 per year Actual usage: 10,600 orders per year Value-added quantity: 7,000 orders per year Required: 1. Calculate the volume variance and explain its significance. 2. Calculate the unused capacity variance and explain its use. 3. What if the actual usage drops to 9,000 orders? What effect will this have on capacity management? What will be the level of spending reduction if the value-added standard is met?
Rosenberry Company computed the following revenue variances for January: Revenue price variance (350,000) Favorable Revenue volume variance50,000 Unfavorable Assuming that the planned selling price per unit was 10 and that actual sales were 175,000 units, determine the following: a. Actual selling price of January. b. Planned number of units that were to be sold in January.
A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
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