Reference no: EM132652723
Problem - Budgeted costs for the 'Lawnmaster' mower for the previous month were as follows:
|
|
Standard Amount per output unit
|
Standard Price per input unit
|
|
Direct Material (Pressed steel lineal metres)
|
50cm (per unit)
|
$70 (per metre)
|
|
Direct Labour
|
2.5 hrs (per unit)
|
$30 (per hr)
|
The firm produced 11,000 units during the last month and actual direct labour hours worked amounted to 28,200 hours at a cost to the firm of $851,000. Manufacturing of 11,000 mowers during the month consumed 6,500 linear metres of pressed steel which was purchased for $390,000.
For the Victory Mowers previous month of operations:
i. Calculate the Direct Material Price (Rate) variance, the Direct Material Quantity (Usage/Efficiency) variance, and the Total Direct Material variance.
ii. Calculate the Direct Labour Price (Rate) variance, the Direct Labour Efficiency variance, and the Total Direct Labour variance.
iii. Describe how there may be a variance interaction (trade-off) effect when a favourable Direct Material Price variance is recorded at the same time as an unfavourable Direct Material Quantity (Usage) variance and an unfavourable Direct Labour Efficiency variance. How should such variances be investigated?
|
Average annual growth in the minimum salary
: What was the average annual growth in the minimum salary in major league baseball over those five years?
|
|
Describe industry strategically relevant macro-environment
: Description of the industry's strategically relevant macro-environmental components, evaluates competition in the industry, assesses drivers of change
|
|
What is the yield to maturity
: The bonds mature in 8 years and have a $1000 face value. Currently, the bonds sell for $942. What is the yield to maturity?
|
|
Why is important to understand the concepts of inflation
: What are some of the important terms and concepts that managers must understand in making decisions in today's global environment?
|
|
Calculate the direct material price variance
: Calculate the Direct Material Price (Rate) variance, the Direct Material Quantity (Usage/Efficiency) variance, and the Total Direct Material variance
|
|
Statements about the impact on the cost of common equity
: If Westwood undertakes this proposal to alter its capital structure, which of the following statements about the impact on the cost of common equity is true?
|
|
Find garrett corporation taxable income
: Jonathan Corporation, use M-1 of Form 1120, which is available on the IRS website, to determine Garrett Corporation's taxable income for 2019.
|
|
How manager would prioritize the variances
: Analyze how and why you, as a manager, would prioritize the variances for analysis and how knowing these variances might help you improve efficiency.
|
|
Why is important to understand the concepts of inflation
: What are some of the important terms and concepts that managers must understand in making decisions in today's global environment?
|