Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 120,000 items were shipped to customers using 2,300 direct labor-hours. The company incurred a total of $7,360 in variable overhead costs. According to the company's standards, 0.02 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour.
Required:
1. What variable overhead cost should have been incurred to fill the orders for the 120,000 items? How much does this differ from the actual variable overhead cost?
2. Break down the difference computed (1) above into a variable overhead rate variance and a variable overhead efficiency variance.

Answers

Answer 1
Answer:

Answer:

The correct answers are as follows:

Numbers of items shipped 140000

Standard Direct labor-hours 0.03

Total direct labor- hours allowed 140000*0.03

= 4200

Standard direct labor cost per hour $3.05

Total standard direct labor cost 3.05*4200

=$12810

Actual cost incurred $15900

total standard direct labor cost $12810

Total direct labor variance = $15900-12810

$3090 F

---------

2. Labor rate variance = (Actual rate - Standard rate) x Actual hours worked

((15900/5300)-3.05)*5300

265 U

Labor efficiency variance = (Actual hours - Standard hours) x Standard rate

(5300-140000*0.03)*3.05

3355 F


Related Questions

During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100,000,060 common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 50,000,000 common shares for $18 per share. Mar. 11 Issued 4,500 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $18 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date General Journal Debit Credit Jan. 12 Land 5,000,000 Paid-in capital—donation of land 5,000,000 Sept. 1 Common stock 2,000,000 Retained earnings 44,000,000 Cash 46,000,000 Dec. 1 Cash 24,000,000 Common stock 1,000,000 Gain on sale of previously issued shares 23,000,000
Atlantis Corporation has 13,000 shares of 14​%, $81.00 par noncumulative preferred stock outstanding and 30,000 shares of no−par common stock outstanding. At the end of the current​ year, the corporation declares a dividend of $186,000. How is the dividend allocated between preferred and common​ stockholders?
Cost Leadership Strategy is one strategy to gain a competitive advantage.a. Trueb. False
Is a business cycle a type of recession?yes or no?
Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August areA)Using a three-week moving average, what would you forecast the next week to be? (Round your answer to the nearest whole number.)B)Using exponential smoothing with ? = 0.20, if the exponential forecast for week 3 was estimated as the average of the first two weeks [(315 + 415)/2 = 365], what would you forecast week 5 to be? (Round your answer to the nearest whole number.)Week 1 315 Week 2 415 Week 3 615 Week 4 715

At December 31, 2020, Sandra’s Boutique had 1850 gift certificates outstanding, which had been sold to customers during 2020 for $70 each. Sandra’s operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 1850 outstanding gift certificates should be deferred at December 31, 2020?

Answers

Answer: $129,500

Explanation:

According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.

On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.

This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).

They cannot therefore recognize the revenue as Revenue yet and have to defer it.

The amount to be Deferred will therefore be,

= 1,850 * $70

= $129,500

An investment of $1,000 produces a net cash inflow of $500 in the first year and $750 in the second year. What is the payback period? a.1.67 years b.0.50 year c.2.00 years d.1.20 years e.Cannot be determined.

Answers

Answer:

a. 1.67 years

Explanation:

The computation of the payback period is shown below:

In year 0 = $1,000

In year 1 = $500

In year 2 = $750

If we take the only year 1 cash inflow i.e $500

Now we deduct the $500 from the $1,000, so the amount would be $500

And, the next year cash inflow is $750

So, the payback period equal to

= 1 years + $500 ÷ $750

= 1.67 years

Peregrine Company acquires all of the voting stock of Falcon Corporation for $65,000, in a merger. Falcon’s balance sheet reports the following asset and liability balances:Current assets

$15,000,000

Plant & equipment

60,000,000

Current liabilities

10,000,000

Long-term debt

40,000,000

Assume the book values of Falcon’s assets and liabilities equal their fair values. How much goodwill does Peregrine report at the date of acquisition?

$35,000,000

$40,000.000

$30,000

$0

Answers

Answer:

(It seems that the amount in question is wrongly typed as 65,000 instead of 65,000,000)

The correct answer is $40,000.000.

Explanation:

The answer is calculated from guidlines provided in IFRS 10.

As per accounting standards the price paid above fair value of net asset is taken as goodwill. Goodwill is accounted as asset in balance sheet.

As fair value is not given we will assume that book values are equal to fair value. The detail calculations are given below.

Consideration paid               $ 65,000,000

FV of net asset                      ($ 25,000,000)

Goodwill                                 $ 40,000,000

Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT::_______a. What are the key managerial positions that are available at the new hotels?
b. What percentage of employers in the service industry use succession planning?
c. What skills, education, and training have been provided to potential candidates?
d. What is the designated procedure for assessing and selecting potential candidates?

Answers

All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates except What percentage of employers in the service industry use succession planning? Therefore, the correct answer is Option B.

   

The percentage of employers in the service industry using succession planning is not directly relevant to Maria's decision to fill top positions at the new hotels with internal candidates. Succession planning is a different concept from internal promotions.

Succession planning typically involves identifying and developing potential candidates for higher-level positions within the organization to ensure a smooth transition when key employees retire, leave, or are promoted to other roles. While it can be beneficial for an organization, it is not directly related to the decision of filling top positions at the new hotels with internal candidates.

The other three questions  What are the key managerial positions that are available at the new hotels? , What skills, education, and training have been provided to potential candidates? , and What is the designated procedure for assessing and selecting potential candidates? are more prominent to make that decision.

To know more about service industry:

brainly.com/question/32233919

#SPJ3

Answer:

b. What percentage of employers in the service industry use succession planning

Explanation:

GOT IT RIGHT ON TEST 2020

When the Fed carries out contractionary monetary policy through selling bonds __________. Select the correct answer below: it reduces the supply of loanable funds which raises the interest rate it reduces the supply of loanable funds which lowers the interest rate it increases the supply of loanable funds which lowers the interest rate it increases the supply of loanable funds which increases the interest rate

Answers

Answer: it reduces the supply of loanable funds which raises the interest rate

Explanation: Contractionary monetary policy is a monetary policy that reduces the supply of money and increases interest rates and is carried out by the Fed through selling of bonds. This reduces the supply of loanable funds and increases the interest rate. It is driven by increases in the various base interest rates with a goal to reduce inflation by limiting the amount of active money in circulation.

A budget that spends more money than the revenue coming in is known as a _______ budget. A. surplus B. federal C. balanced D. deficit

Answers

Answer:

D. deficit

Explanation:

A budget surplus is income left over during a budget period after all budget expenses have been paid.

A federal budget is the government's estimate of revenue and spending for each fiscal year.

A balanced budget is a budget in which revenues are equal to expenditures.

Answer:

D. deficit

Explanation:

I took a quiz!

Other Questions