Swain company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. the company's beginning balance in retained earnings is $65,000. it sells one product for $170 per unit and it generated total sales during the period of $603,500 while incurring selling and administrative expenses of $54,500. swain company does not have any variable manufacturing overhead costs and its standard cost card for its only product is as follows:
Answers
Answer:
Budgeted COGS = $134 x 3,550 units = $479,250
Actual COGS = $482,151.42, so the total variance was $2,901.42 U
Swain Company
Income statement
Total revenue $603,500
COGS: ($482,151.42)
Direct materials $217,925.67Direct labor $14,300.75Fixed overhead $249,925Gross profit $121,348.58
S&A expenses ($54,500)
Net profit $66,848.58
Retained earnings = $65,000 + $66,848.58 = $131,848.58
Explanation:
retained earnings $65,000
total sales $603,500
number of units sold = $603,500 / $170 per unit = 3,550 units
selling and administrative expenses $54,500
materials quantity variance = (actual quantity - standard quantity) x standard price = $9,250 favorable. This means that the company used fewer materials than budgeted: -$9,250 = (actual quantity - 24,850) x $9
actual quantity used = (-$9,250 / $9) + 24,850 pounds = 23,822.22 pounds less
materials price variance = (actual cost - standard cost) x units purchased = $3,525 U. This means that the company paid $3,525 more for materials than it had estimated: $3,525 = (actual cost - $9) x 23,822.22 pounds
actual cost = ($3,525 / 23,822.22 pounds) + $9 = $9.148 per pound
*the only way 2 labor hurs x standard cost = $1, is that standard cost = $0.50
labor efficiency variance = (actual hours - standard hours) x standard rate = $6,725 = (actual hours - 7,100) x $0.50:
actual hours = ($6,725 / $0.50) + 7,100 = 20,550 hours
labor rate variance = actual hours x (actual rate - standard rate) = $4,025 = 7,660.42 hours x (actual rate - $12):
actual rate = ($4,025 / 20,550 hours) + $0.50 = $0.6959
fixed overhead budget variance = actual fixed overhead - budgeted overhead = $1,425 U = actual fixed overhead - $248,500:
actual fixed overhead = $248,500 + $1,425 = $249,925
actual fixed overhead per unit = $249,925 / 3,550 = $70.4014
fixed overhead volume variance = (actual hours - standard hours) x actual fixed overhead per unit = -$6,000 F = (actual hours - 3.5 hours) x $70.4014:
actual overhead hours = (-$6,000 / $70.4014) + 12,425 hours = -85.23 + 12,425 = 12,339.77 hours
Related Questions
Businesses in the nation of Islandia have been accumulating cash because they have a pessimistic outlook of the national economy. Recent changes in the economic outlook of Islandia have caused business leaders to begin to invest some of their accumulated cash. Suppose that businesses in the country invest a total of $20 billion of this cash. (a) What would be the maximum expected change in GDP if Islandia's marginal propensity toconsume (MPC) is 0.75? (b) Suppose that the recent economic outlook in the country of Mountainia has been the opposite.Businesses have postponed planned investments and have begun to accumulate cash. Ifbusinesses in Mountainia postpone $10 billion of their planned investments, what would be themaximum expected change in GDP if its marginal propensity to save (MPS) is 0.25?
Answers
Answer:
Please see answer and explanation below.
Explanation:
A. Since MPC is 0.75, therefore MPS would be 0.25 (i.e 1-MPC, 1-0.75)
The multiplier will now be(1/MPS) 1/0.25=4
It therefore follows that if investment increases $20billion, aggregate demand will also increase by $80billion(i.e 20 × 4). This means $60billion in consumption and $20billion in investment.
B. Since MPS is 0.25, Multiplier would therefore be 1/0.25(1/MPS) = 4
It therefore follows that if $10billion planned investments is postponed, the aggregate demand would decrease by $40billion( i.e 10 × 4 )
Meaning that there would be $30billion in consumption and $10billion in investment.
your total debt from all loans should not exceed what percentage of your gross monthly salary?
a) 16%
b) 26%
c) 36%
d)40%
Answers
Answer: The answer is c) 36 percent
Explanation:
.WHAT ARE THE MERITS AND DEMERITS OF MNC
Answers
Explanation:
Merits1. it has created a competition through which large varieties of a single goods is available in the market.
2. for the home country, it has lessens the dependence on import and lead to economic development by providing new jobs opportunity .
Demerits1. in some host Nation, the appearance of MNC can regulate competition and main event create a monopoly .
2. workers in the MNCs are paid on an irregular bases and they are often laid off without any payment during the time of recession .
