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XYZ Manufacturing expects to use 5 Machine Hours (MH) for every unit produced- MH is the cost driver for Variable Manufacturing Overhead (MO), which only involves electricity cost. Expectations regarding electricity cost are: pay $0.10 per kilowatt hour (kwh), and use 80 kwh for each MH used. For the month, actual production was 1,000 units, actual MH used were 6,500, actual kwh used were 600,000, and the actual rate paid per kwh was $0.12.
Question 1: Compute the Variable MO Spending Variance (VOSV) and label unfavorable (U) or favorable (F).
a. $72,000 (U)
b. $8,000 (U)
c. $20,000 (U)
d. $12,000 (U)
Question 2: Compute the Variable MO Efficiency Variance (VOEV) and label unfavorable (U) or favorable (F).
a. $12,000 (U)
b. $9,600 (U)
c. $8,000 (U)
d. $150 (U)
Find what fringe benefits are subject to this limitation and what fringe benefits escape this limitation?
Prior to disposal, the division operated at a loss of $397, 500 (net of tax) in 2014. Finley had 10,000,000 shares of common stock outstanding during 2014.
base your answer on the data from paxton inc. for march.nbsp paxton uses the average costing method.paxton inc. for
Which department should bear the responsibility for the two days' downtime? How can similar problems be avoided in the future?
How do these changes alter your conclusion from Part A? Add this new analysis and discussion of the possible change to your memo.
the city of shipley maintains an employee retirement fund a single-employer defined benefit plan that provides annuity
Assume the new testing equipment is rented and installed on December 31 - What will be the impact on this year's divisional operating profit?
question a spare parts supplier is thinking of building a car from the parts he has in his yard. he does not expect any
How many cups of coffee and how many bagels must Bobbie sell in order to break even assuming the sales mix of four cups of coffee to one bagel, given previously?
These costs will normally include hardware, software, and labor costs not already identified as capital costs.
If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea?
Write a brief statement outlining the projected costs and benefits of using an ABC approach for the day- to-day control of the overhead costs referred to above as compared to the use of a more traditional cost system.
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