Reference no: EM1349953
At the start of the year, Frigicor estimated that the company would produce 480 refrigeration units during the year (40 per month). Annual fixed overhead costs were estimated to be $600,000 ($50,000 per month), and estimated variable overhead costs were estimated to be $500 per unit. Standard cost per unit was set at $3,450:
Standard material cost $1,200
Standard labor cost 500
Standard overhead rate per unit 1,750
Total $3,450
During the year, the company experienced stiff competition and ended up producing and selling only 400 units.Actual annual production costs were $1,498,200, and standard cost variances were
as follows:
Summary of Production Variances
Material price variance $ 2,200 unfavorable
Material quantity variance 11,500 unfavorable
Labor rate variance (2,300) favorable
Labor efficiency variance 4,800 unfavorable
Controllable overhead variance 2,000 unfavorable
Overhead volume variance 100,000 unfavorable
Total $118,200 unfavorable
Required
Suppose you are the CFO of Frigicor,and you want to determine the cause of significant variances.Given the demands on your time, you donâ??t want to investigate variances that have an obvious explanation or that are less than 1/2 percent of actual production cost. Which variance(s) would you investigate? Explain the basis for your answer.
|
Find the four components of the conflict process
: Explanation to management question - Find the four components of the conflict process.
|
|
Studies of cognitive maps
: What do the studies on cognitive maps involving rats, bees, and pigeons teach us about human cognition? Give some examples of how we use cognitive maps in a similar way as the creatures in the experiments do.
|
|
Algorithm for string of numbers recognize all the substrings
: Write down algorithm, using pseudocode, to perform the following task, Given a string of numbers, recognize all of the substrings that form numbers that are divisible by 3.
|
|
Type of costing system
: Describe the costs and processes involved in making your firm's product or providing their service, and state what type of costing system might be used (job order, process or hybrid costing)
|
|
Determine the cause of significant variances
: At the beginning of the year, Frigicor estimated that corporation would produce 480 refrigeration units during the year. Yearly fixed overhead costs were estimated to be $600,000,
|
|
Calculate the change in electric potential energy
: calculate the average acceleration in m/s^2 (meter per second square), using a coordinate system with the X axis in the direction of the car's original motion and the Y axis toward the side of the road to which the car skids.
|
|
Explain how difficulty will it be for the owner to plan
: Explain how difficulty will it be for the owner to plan for this new competitive threat.
|
|
Important information about managing people
: Find examples of how business are being affected by and/or are dealing with issues and will also talk about a country, sports team or a political situation
|
|
Describe an achievement assessment
: Briefly describe an achievement assessment (you can select any). Explain how the test reviews of the achievement assessment compare to the standards for assessments
|