Reference no: EM131174869
The following variances have been calculated in respect of a new product:
Direct labour efficiency variance $14,700 Favourable
Direct labour rate variance $ 5,250 Adverse
The variances were calculated using standard cost data which showed that each unit of the product was expected to take 8 hours to produce at a cost of $15 per hour. Actual output of the product was 560 units and actual time worked in the manufacture of the product totalled 3,500 hours at a cost of $57,750.
However, the production manager now realises that the standard time of 8 hours per unit was the time taken to produce the first unit and that a learning rate of 90% should have been anticipated for the first 600 units.
Required:
(a) Calculate planning and operating variances following the recognition of the learning curve effect.
(b) Explain the importance of learning curves in the context of Target Costing.
Note: The learning index for a 90% learning curve is -0.1520
|
Which projects should empire accept
: Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9%, as long as it finances at its target capital structure, which calls for 35% debt and 65% common equity. Its last dividend ..
|
|
Bench-marking is and its purpose
: 1. What do you think bench-marking is and what is its purpose? 2. If you were the District Manager, could you/would you use the "best store" or "best X stores" or "best in class" to benchmark and drive performance for the other stores? How? Or, w..
|
|
Develop your case by creating a challenge for the adult
: Develop your case by creating a challenge for the adult who is navigating through one of the three phases of adulthood. Describe what the selected adult struggles with in this phase of his or her lifespan.
|
|
Interview an executive of a small company
: Interview an executive of a small company who has been able to break into the overseas market.- Describe how management could use their knowledge to teach other small-business owners.
|
|
Calculate planning and operating variances
: (a) Calculate planning and operating variances following the recognition of the learning curve effect. (b) Explain the importance of learning curves in the context of Target Costing.
|
|
Cardiomyopathy alcholic
: Write an essay on the given topic "CARDIOMYOPATHY –ALCHOLIC"
|
|
Explain the types of quantifiable data at the end
: Explain the types of quantifiable data at the end but instead information in narrative answer form. Think back to your research design course completed before this Senior Seminar one.
|
|
In a traditional mass cyclical assessment system
: In a traditional mass cyclical assessment system, which of the following occurs?
|
|
Calculate cash flow for jelly fences
: What was the profit for the year and the operating cash flows for Outback Fences if the tax rate is 30%?- Calculate Cash-flow for Jelly Fences for the year 2016.
|