Reference no: EM131881299
Problem - The following questions are based on the following data:
Direct materials: standard, 5 pounds per unit at $2 per pound
Direct labor: standard, 1/2 hour @ $16 per hour
Suppose the following were the actual results for production of 8,500 units:
Direct material: Dominion purchased and used 46,000 pounds at an actual unit price of $1.85 per pound, for an actual total cost of $85,100.
Direct labor: Dominion used 4,125 hours of labor at an actual hourly rate of $16.80 for a total actual cost of $69,300
1) Compute the price and usage variances for direct labor and direct material.
2) Suppose the company is organized so that the purchasing manager bears the primary responsibility for purchasing materials, and the production manager is responsible for the use of materials. Assume the same facts as in requirement 1 except that the purchasing manager bought 60,000 pounds of material. This means there is an ending inventory of 14,000 pounds of material. Recompute the material variances.
Define what libor is and how its computation is governed
: Give two examples of interest-rate derivatives that derive their values from LIBOR, briefly explaining what they are and how they work.
|
Growth phase of the product life cycle
: What are the who, what, how, when and where elements of negotiation during the growth phase of the product lif
|
Create the journal entries altman company must record
: Create the journal entries Altman Company must record in its books at bond issuance, the first interest payment date, and at bond maturity.
|
Semiannual coupon bond matures in four years
: A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.5272%. What is the bond's price?
|
Compute the price and usage variances for direct labor
: Dominion used 4,125 hours of labor at an actual hourly rate of $16.80 for a total actual cost of $69,300, Compute price and usage variances for direct labor
|
Proper interpretation of the results
: You must provide a proper interpretation of the results (such as that of Scatter plot and Pareto diagram)
|
Determine the incremental after-tax operating cash flows
: Determine the incremental after-tax operating cash flows (Y0)-155,000,(Y1) 32,947,(Y2)34155,(Y3)26441,(Y4)22279,(Y5)36102.
|
Managing bottlenecks
: There are five things discussed in the text that are important to managing bottlenecks, which is the most important and why?
|
What amount of income from investment should chicago report
: On January 1, 20X7, Chicago Corporation purchased 6,000 shares of Buffalo company's share. What amount of income from this investment should Chicago report?
|