Answer:
Flat
Explanation:
An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.
Basically, the organizational structure comprises of three (3) main dimensions and these are;
I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).
II. The horizontal dimension: this divides the organization into subunits.
III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.
A span of control can be defined as the number of people (employees or workers), functions, activities which are being directly controlled effectively and efficiently by a manager in an organization.
In this scenario, a company has few managerial levels. Also, all short chain of command usually has a wide span of control. This is called a flat organizational structure.
A flat organizational structure can be defined as an organizational structure that comprises of a few or no levels of middle managers between employees and the executive. Thus, it's an organizational structure that brings the top executive in direct contact with the employees such as salespeople, customer care, cashier, etc.
Explain the statement “The entrepreneur is the pivot of development.”
Answer:
Entrepreneurship is a continuous phase of development and movement while being focused on goal
Explanation:
An entrepreneur has an undeniable trait of being flexible along with being focused and pivoted to move in the right direction at the right time. If the circumstances require, he/she can also pivot in the other direction while being flexible at the same time.
Thus, entrepreneurship is a continuous phase of development and movement while being focused on goal.
Businesses rely on information to manage ________ that cuts across and supports the entire organization.
Answer:
customer services.
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Thus, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers.
Hence, businesses generally rely on information to manage customer services that cuts across and supports the entire organization.
In conclusion, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management and as a significant level of impact on a business such as in sales revenue and profits.
The Bronco Corporation exchanged land for equipment. The land had a book value of $125,000 and a fair value of $160,000. Bronco received $15,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment
Answer:
The Bronco Corporation
The fair value of the equipment is:
= $145,000.
Explanation:
a) Data and Calculations:
Book value of land = $125,000
Fair value of the land = $160,000
Amount received from the equipment owner in exchange = $15,000
Fair value of the equipment = $145,000 ($160,000 - $15,000)
b) This simply means that the equipment is worth less than the land which is exchanged between Bronco and the equipment owner.
Sunland Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $ 318000 $494000 Purchases 1240000 1720000 Freight-in 23000 — Employee discounts — 8500 Net markups — 66000 Net markdowns — 86000 Sales revenue — 1620000 If the ending inventory is to be valued at approximately lower of average cost or market, the calculation of the cost ratio should be based on cost and retail of
Answer:
Sunland Co.
The calculation of the cost ratio should be based on cost and retail of $1,581,000 and $2,288,500 respectively.
Explanation:
a) Data and Calculations:
Cost Retail Cost to Retail Ratio
Beginning inventory $ 318,000 $494,000
Purchases 1,240,000 1,720,000
Freight-in 23,000 —
Employee discounts — 8,500
Net markups — 66,000
Goods available for sale $1,581,000 $2,288,500 69.08%
Less:
Net markdowns — 86,000
Sales revenue — 1,620,000
Estimated ending Inventory at retail $582,500
Estimated ending Inventory
at cost $402,391 ($582,500 * 69.08%)
Calculation of the cost ratio = $1,581,000/$2,288,500 * 100 = 69.08%
Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.
Answer:
See below
Explanation:
Given the above information, segment margin is computed as shown below.
Segment margin = Net sales - Cost of sales - Fixed cost
Given that;
Net sales = $100,000
Cost of sales = $55,000
Fixed cost = $35,000
Then,
Segment margin = $100,000 - $55,000 - $35,000
Segment margin = $10,000
Therefore, the division's segment margin is $10,000
BrandCo currently has 65.6 million shares outstanding. If BrandCo's shares are traing at $57 per share, what is the company's market capitalization (i.e., value of equity)
Answer:
$3,739.20 million
Explanation:
Calculating the company's market capitalization
- 65.6 million shares outstanding
- If BrandCo's shares are trading at $57 per share
Company's market capitalization = Shares outstanding * Current price
Company's market capitalization = 65.6 million shares * $57
Company's market capitalization = $3,739.20 million
what is the equivalent present amount of an eight year series of decreasing amaounts if the interest rate is 10% compounded annually, the first year amount is $20,000, and the rate of decrease is $800 per year
Answer: $93,876
Explanation:
The equivalent present amount of an 8year series of decreasing amounts when the interest rate is 10% compounded annually, the first year amount is $20,000, and the rate of decrease is $800 per year will be calculated thus:
PV = C / (1+r) ^ t
= 20,000/1.1 + 19,200/1.1² + 18,400/1.1³ + 17,600/1.1⁴ +16,800/1.1^5 + 16,000/1.1^6 + 15,200/1.1^7 + 14,400/1.1^8
= $93,876
Therefore, the equivalent present value is $93,876.
What are some of the advantages and disadvantages of mobile payment systems in (a) developed countries and (b) developing countries
Answer: Advantage of mobile payment system for developed countries
- They are directly linked to bank accounts
- People can make payment for products easily when they have the applications installed in their phones
Explanation:
We would consider the advantage and disadvantage for developed countries.
Advantage of mobile payment system for developed countries
- They are directly linked to bank accounts
- People can make payment for products easily when they have the applications installed in their phones
Disadvantages
- Due to the large amount of companies using such services it raises compatibility issues across systems
Developing countries(Advantages)
- It allows users transfer money to those they are doing business with and also friend's and family.
Disadvantages
- Due to development issues, consumer registration process is yet to be clearly figured out, making it a bit complicated.
One-period pricing. Recall that since stocks have really long lives, in the video we first imagined owning a stock for only one period. In this simple, yet powerful scenario, today's stock price is the PV of next year's dividend and next year's stock price). The stock of Alydar Oil, an all-equity firm, is currently trading at $30 per share, after just having paid a $2.40 per share dividend. The market expects a dividend of $3.10 per share to be paid one year from today. If the equity cost of capital (same as discount rate for equity) is 12% for this firm, the expected ex-dividend price (the stock price after the dividend is paid next year) in one year (t = 1) should be closest to:_____.
a. $31.20.
b. $31.05.
c. $30.50.
d. $33.60.
Answer:
c. $30.50
Explanation:
As rightly said, the current stock price is the present value of a dividend in one year and the expected price at the end of the year discounted at the equity cost of capital which is 12% in this case
current share price=D1+P1/(1+cost of equity)^n
current share price=$30
D1=$3.10(dividend expected in one year)
P1=unknown(price in one year)
cost of equity=12%
n=investmet time horizon=1 year
$30=$3.10+P1/(1+12%)^1
$30*(1+12%)=$3.10+P1
$33.60=$3.10+P1
P1=$33.60-$3.10
P1=$30.50
Riggins, Inc. manufactures one product called tybos. The company uses a standard cost system and sells each tybo for $8. At the start of monthly production, Riggins estimated 9,500 tybos would be produced in March. Riggins has established the following material and labor standards to produce one tybo:
Particulars Standard quantity Standard price
Direct materials 2.5 pounds $3 per pound
Direct labor 0.6 hours $10 per hour
During March 2013, the following activity was recorded by the company relating to the production of tybos:
1. The company produced 9,000 units during the month.
2. A total of 24,000 pounds of materials were purchased at a cost of $66,000.
3. A total of 24,000 pounds of materials were used in production.
4. 5,000 hours of labor were incurred during the month at a total wage cost of $55,000.
Instructions:
Calculate the following variances for March for Riggins, Inc.. Identify whether the variance is favorable or unfavorable.
a. Materials price variance
b. Materials quantity variance
c. Labor price variance
d. Labor quantity variance
Answer:
Riggins, Inc.
a. Material price variance
= $450 F
b. Material quantity variance
= $750 U
c. Labor price variance
= $550 U
d. Labor quantity variance
= $7,000 F
Explanation:
a) Data and Calculations:
Selling price of tybo per unit = $8
Estimated production units in March = 9,500
Standard material and labor costs:
Particulars Standard Standard Standard
quantity price per unit
Direct materials 2.5 pounds $3 per pound $7.50
Direct labor 0.6 hours $10 per hour $6.00
Actual production units in March = 9,000
Actual materials and labor costs:
Actual results:
Purchase of materials, 24,000 pounds = $66,000
Production usage = 24,000 pounds
Total labor hours = 5,000
Total wage cost = $55,000
Particulars Actual Actual Actual Cost
quantity price per unit
Direct materials 2.67 pounds $2.79 per pound $7.45
Direct labor 0.555 hours $11 per hour $6.11
Material price variance = (Standard price - Actual price) * Actual quantity
= ($7.50 - $7.45) * 9,000
= $450 F
Material quantity variance = (Standard Qty - Actual Qty) * Standard Price
= (23,750 - 24,000) * $3
= $750 U
Labor price variance = (Standard price - Actual price) * Actual hours
= ($6.00 - $6.11) * 5,000
= $550 U
Labor quantity variance = (Standard Qty - Actual Qty) * Standard Price
= (5,700 - 5,000) * $10
= 700 * $10
= $7,000 F
Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.
a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost
Answer:
c
Explanation:
Marginal revenue is the change revenue when quantity sold increases by one unit
Marginal revenue = change in total revenue /change in quantity sold
Mimi's marginal revenue = $10 - $8 = $2
The relationships between inventory and throughput, and inventory and operating expense are defined as follows: As everyone is slowed down, the gap between the first and last hiker expands. As the gap expands, inventory drops. Operational expense is decreasing every time we hurry up because we are expending additional energy just to catch up. Group of answer choices True False
Answer:
False
Explanation:
Operational expense will instead increase when we hurry up because of the additional energy spent to catch up. The relationship between inventory and throughput is determined by time because throughput is the rate of change in inventory and is a product of Inventory divided by Time. This agrees with the inventory formula that states that throughput multiplied by time is equal to inventory.
The equilibrium price is: unstable because at this price the quantity demanded is less than the quantity supplied. stable because at this price the quantity demanded equals the quantity supplied. stable because at this price all buyers are willing and able to pay. unstable because at this price the quantity demanded exceeds the quantity supplied.
Answer:
stable because at this price the quantity demanded equals the quantity supplied.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
Generally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
On November 12, 2013, Berube Co. repurchased 10,000 shares of its own stock at a price of $20 per share. Berube had originally issued the stock in 2010 at a price of $15 per share.Which of the following items would be decreased by the stock repurchase transaction? (check all that apply)a. Total Shareholders Equity.b. Total Assets.c. Cash from Financing Activities.d. Total Liabilities.e. Accumulated Other Comprehensive Income.
Answer:
Berube Co.
The items that would be decreased by the stock repurchase transaction are:
b. Total Assets.
c. Cash from Financing Activities.
Explanation:
a) Data and Calculations:
November 12, 2013: Repurchase of 10,000 shares at a price of $20 per share = $200,000 (10,000 * $20)
b) The treasury stock repurchase decreases the cash from financing activities by $200,000. This also reduces the Total Assets in the form of cash used in the repurchase. The opposite becomes the case when treasury stock is sold. Cash from financing activities is increased just as the Total Assets are increased.
Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United States. What are the advantages and disadvantages of choosing the Bledsoe Large-Company Stock Fund compared to the Bledsoe S
The seaport town of New Monopoly has become extremely popular with shipping companies due to its superior location. The port has become so congested that ships must wait hours every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of marginal analysis. a private good. market failure. a recession.
Answer:
Market failure.
Explanation:
In this scenario, the port became so congested such that ships now have to wait hours queing every day just to dock. The mayor of New Monopoly realizes that the congestion at the port costs the shipping companies and his town money. This is an example of market failure.
A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet demand.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
When reviewing the performance appraisals for the marketing department, the HR manager found what appeared to be leniency errors, as most employees received similar ratings that were above average. Going forward, raters are going to be required to use a forced distribution, as this will reduce the chance of leniency or strictness errors.
a. True
b. False
True Is the Answer dear....
It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.
What is performance appraisal?This is a process of evaluating how well an employee has performed in an organization and in line with the employee's key performance indicator.
The aim of perfomace apprailsal for the organization to know whether or not an employee abide with the indicators set by the company.
Hence, It is true that raters are going to be required to use a forced distribution when reviewing the performance appraisals of marketing department by HR manager.
Learn more about performance appraisal here: https://brainly.com/question/1532968
Assume the BigMac is sold at US$5 in US and 3 Euro in Germany. Let's assume the current spot exchange rate is 1.21 US$/Euro. If we believe in th PPP theory, US$ should _____ against Euro. Group of answer choices appreciate depreciate
Answer:
depreciate
Explanation:
Right now the relative value of the dollar is too high. If we follow the purchasing power parity theory, the value of the US dollar against the euro should be:
current spot rate x (domestic price / foreign price) = ($1.21 / 1€) x ($5 / 3€) = $6.05 / 3€ = $2.0167 per €
If a member firm believes that a senior citizen with an account at the firm is being financially exploited, the member would contact the client's A attorney B closest relative C trusted contact person D registered representative
Answer:
C trusted contact person
Explanation:
If a member firm believes that a senior citizen with an account at the firm is being financially exploited, the member would contact the client's "trusted contact person."
Option A is not correct because contacting the client's attorney would lead to legal action, which may affect the firm as well.
Option B is not correct because contacting the client's close relative might not be in the best interest of the client.
Option D is not correct because contacting the client's registered representative might not yield the expected outcome as the registered representative's main function is to involve in trading investment products and securities.
Hence, option C is correct because a trusted contact person is a person that the client has authorized the brokerage firm to contact in a situation such as when the client account may be exposed to financial exploitation.
Santos Co. is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance
Answer:
$10,250
Explanation:
The Cash Budget for February can be summarized as :
Receipts $75,000
Less Payments ($100,250)
Cash movement ($25,250)
Beginning Balance $20,000
Ending Balance ($5,250)
Desired Balance $5,000
Amount to be Borrowed $10,250
The company must borrow $10,250 ($5,000 + $5,250) during February to maintain a $5,000 cash balance.
answer the following about break even analysis. New city day care center operates from Monday to friday. it has fixed expenses of $5,000 per week and charges each child who attends the program $15 per day. It costs the center $5 per day for supplies and snacks fro each child. How many children must come ot the center each day for it to break even
Answer:
500 children
Explanation:
Break even point is the level at which a firm makes neither a profit nor a loss. In other words the point where Profit = $ 0.
Break even (units) = Fixed Costs ÷ Contribution per unit
Therefore,
Break even (children) = $5,000 ÷ ($15 - $5)
= 500
500 children must come to the center each day for it to break even.
416,000 people each receive an average refund of $3,600, based on an interest rate of 3 percent, what would be the lost annual income from savings on those refunds
Answer:
$44,928,000
Explanation:
The fact that 416,000 received a refund of $3,600 each means that the tax authority would lose the interest income that could have been generated on the total refund amount based on a 3% interest rate of return.
Lost annual income=number of people who got refund*average refund per person*interest rate of return
number of people who got refund=416000
average refund per person=$3,600
the interest rate of return=3%
Lost annual income=416,000*$3,600*3%
Lost annual income=$44,928,000
If no page number or paragraph number is available when directly quoting from an electronic source, then the heading or section name along with the number of the paragraph within that section should be included.
a. True
b. False
Answer:
a. True
Explanation:
Plagiarism can be defined as the act of representing or using an author's work, ideas, thoughts, language, or expressions without their consent, acknowledgement or authorization.
This ultimately implies that, plagiarism is an illegal act of presenting another author's intellectual work or copyrighted items by using their ideas, thoughts, language or expressions, word for word without authorization or permission from the original author.
The four (4) common types of plagiarism are;
1. Copy and paste: this typically involves copying another author's work word for word and pasting it as yours without proper citation or reference with quotation marks.
2. Improper citation : this involves an author failing to provide an in-text reference or citation of the original author appropriately.
3. Find and replace: this typically involves an author finding some words to change (replace) in the original literary work.
4. Fabrication: this occur when an author makes up unverified or false data to use in his or her literary work.
Attribution can be defined as a process which typically involves the citation (reference) of an original source of information such as a quote, paraphrase or summary, using the author's full name and job title or position as the case may be.
Furthermore, if there is no page number or paragraph number when directly quoting from an electronic source, then one is permitted to use the heading or section name along with the number of the paragraph within that section.
Interest earning of 3% with a $450 minimum balance average monthly balance of $900 monthly service charge of $11 for falling below the minimum balance which occurs five times a year no interest earned in the month. What is the net annual cost
Answer:
$39.25
Explanation:
Given that Interest earning = 3 percent
minimum balance = $450
average monthly balance = $900
monthly service charge = $11
Occurrence period = 5 times
Hence, Net annual cost = Service charges - Interest earnings
=> Service Charge = (5 × $11) - Interest earnings (7 / 12)(0.03 × $900)
= $55 - $15.75
= $39.25
Therefore, the final answer to this question is $39.25
Destaque las ventajas y desventajas que tiene un mercado libre.
answer:
ventaja —
libertad para innovarlos clientes impulsan las eleccionesdesventaja —
gamas de productos limitadaspeligros del afán de lucroexplanation:
la falta de control gubernamental permite a las economías de libre mercado una amplia gama de libertades, pero estas también tienen algunos inconvenientes distintosIf the cost of the beginning work in process inventory is $70,400, costs of goods manufactured is $955,000, direct materials cost is $343,000, direct labor cost is $223,000, and overhead cost is $328,000, calculate the ending work in process inventory.
Answer:
Ending WIP= $9,400
Explanation:
Giving the following information:
beginning work in process inventory is $70,400
Costs of goods manufactured are $955,000
Direct materials cost is $343,000
Direct labor cost is $223,000
Overhead cost is $328,000
To calculate the ending work in process, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
955,000= 70,400 + 343,000 + 223,000 + 328,000 - Ending WIP
Ending WIP= $9,400
Back to Assignment
tudy Tools
Attempts 13
Keep the Highest 13/3
.
5. Problems and Applications Q9
5
s Tips
A farmer grous wheat, which she sells to a miller for $80. The miller turns the wheat
into flour, which she sells to a baker for $120. The bakers
the heat into bread, which she sells to consumers for $140. Consumers eat the bread.
3 Tips
Assume that these transactions account for all economic activity in this economy.
GOP in this economy is 5
ra FREE 7-
Unlimited
Limited
value added is defined as the value of a producer's output minus the value of the intermediate goods that the producer buys to make the output
re
Ansuring there are no intermediate goods beyond those just described, complete the following table by calculating the value added for each of the
three producers. Then enter the total value added in the final row.
Value Added
Producer
Dollars)
Answer:
only 5 point.................
On February 1, 2020, Sheffield Corporation factored receivables with a carrying amount of $740000 to Ivanhoe Company. Ivanhoe Company assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheffield Corporation for February. Assume that Sheffield factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
Answer:
$33,100
Explanation:
Calculation to determine what The loss to be reported is
Using this formula
Loss=(Factored receivables*finance charge)+Fair value
Let plug in the formula
Loss=($740,000 × .04)+ $3,500
Loss= $29,600+$3,500
Loss=$33,100
Therefore The loss to be reported is $33,100
Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spending and tax policy that the government pursues to achieve particular macroeconomic goals. the investment policy that businesses pursue to achieve particular macroeconomic goals. the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. none of the above
Answer:
the spending and tax policy that the government pursues to achieve particular macroeconomic goals.
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.
Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.
During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Actual StandardJob Number Hours Cost Hours Costs Totla varianceA257 210 $4,830 216 $4,968 $138 F A258 480 12,000 464 10,672 1,328 U A259 330 7,953 330 7,590 363 U A260 110 2,310 102 2,346 36 F Total variance $1,517 U Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent.Required:Prepare a report for the plant supervisor on direct labor cost variances for March.
Answer:
Toby Tool & Die Company
A Report on the Direct Labor Cost Variances for March, 2020:
Variances Variance
Job Number Quantity Rate Total
1. A257 $138 F $138 F
2. A258 $368 U $960 U $1,328 U
3. A259 $363 U $363 U
4. A260 $184 U $220 F $36 F
Total $414 U $1,103 U $1,517 U
Explanation:
a) Data and Calculations:
Actual Standard
Job Number Hours Cost Hours Costs Total variance
A257 210 $4,830 216 $4,968 $138 F
A258 480 12,000 464 10,672 1,328 U
A259 330 7,953 330 7,590 363 U
A260 110 2,310 102 2,346 36 F
Total variance $1,517 U
Actual Standard
Job Number Hours Cost Rate Hours Costs Rate Total variance
A257 210 $4,830 $23 216 $4,968 $23 $138 F
A258 480 12,000 25 464 10,672 23 1,328 U
A259 330 7,953 24.1 330 7,590 23 363 U
A260 110 2,310 21 102 2,346 23 36 F
Total variance $1,517 U
1. A257's favorable variance of $138 was quantity variance as less hours were used when compared to the standard hours for the job.
= (Standard hours - Actual hours) * Standard rate = (216 - 210) * $23
= 138 F
2. A258 rush order with overtime at premium rates of pay
Direct labor rate variance = (Standard Rate - Actual Rate) * Actual hours
= ($23 - $25) * 480 = $960 U
Direct labor quantity variance = (Standard hours - Actual hours) * Standard Rate
= 464 - 480 * $23 = $368 U
Total variance = 1,328 U ($960 U + $368 U)
3. A259 more experienced replacement worker required on one shift
Direct labor rate variance = (Standard Rate - Actual Rate) * Actual hours
= ($23 - $24.1) * 330 = $363 U
4. A260 done by a new trainee
Direct labor rate variance = (Standard Rate - Actual Rate) * Actual hours
= ($23 - $21) * 110 = $220 F
Direct labor quantity variance = (Standard hours - Actual hours) * Standard Rate
= (102 -110) * $23 = $184 U
Total variance = $220 F - $184 U = $36 F