As economic actors we attempt to consume a bundle of goods that will maximize our utility, subject to time constraints income .
Economic actors are grouped into 3 categories, particularly individuals/households, companies, and the kingdom. among those actors handiest monetized transactions are taken into consideration.
Like companies and families, the government is an financial actor. Its taxes, spending, laws, wars, and other sports are as a great deal part of financial life because the investment, financial savings, buying, and promoting sports of families and corporations.
An entrepreneur is an financial agent who unites all means of production—land of one, the labour of some other and the capital of yet another—and as a result produces a product.
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A hiking boot’s profits are declining because new competition has entered the market, but its cost has also declined due to increased volume of production. What stage of the product development life cycle is the hiking boot in?.
Its in Maturity stage of the product development life cycle for the hiking boot company and that's why hiking boot’s profits are declining because new competition has entered the market.
What exactly does product development entail?The conceptualization, design, development, and marketing of newly created or newly rebranded goods or services are all parts of the process known as product development, also known as new product management. Product development covers every step of a product's lifecycle, from the initial concept until the time it is made available to consumers.
An illustration of product developmentThe examples of typical product development are shown below. wheat flour is packaged in consumer bags for usage at home. putting cooking oil into retail sachets for home usage. Transforming landline phones into wireless handsets to enable convenient portability and constant communication.
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cost relates not only to overall cost but also to such aspects as payment options and value received for the purchase price. group of answer choices true false
A pricing strategy called "customer-driven pricing" is one in which a business sets prices based on how much its customers think its goods and services are worth.
How does value-based pricing work?
pricing based on value.Setting a price based on what the buyer thinks is worth it rather than what the seller costs.Survey client needs and worth discernments - > set target cost to match client saw esteem - > decide costs that can be brought about - > plan item to convey wanted esteem at target cost.
What are the 4 significant evaluating methodologies?
Depending on the industry and business model in question, a variety of models are utilized frequently, including value-based, competition-based, cost-plus, and dynamic pricing.
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a roth ira does not have: tax-free distribution of the funds upon retirement. a tax-deferred growth characteristic. an early withdrawal penalty.
Contributions to a Roth IRA are not tax deductible, but profits have the potential to grow tax-free, and qualifying withdrawals are also tax- and penalty-free.
How do withdrawals work?Payments from an owner's stake of a corporation are known as withdrawals or owner withdrawals. In other words, it's cash that the business's owner withdrew for personal purposes. Owner withdrawals are money transfers from the company to the owner. These cash transfers reduced the amount of equity that remains in a company but have no effect on how profitable the company is.
Are withdrawals a form of commerce?In company, a withdrawal accounts can be used to monitor the owner's expenditures. Therefore, withdrawals in the context of business are actions taken by an owner to remove funds from a withdrawal account.
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the u.s. tax burden is a. about the same as most european countries. b. higher than most european countries. c. lower than most european countries. d. higher than all european countries.
Compared to most European countries, the U.S. tax burden is lower than most European countries. The Option C is correct.
What is a tax burden?In economics, a tax burden is also known as a tax incidence, which means the effect of a particular tax on the distribution of economic welfare.
The tax burden measures true economic weight of the tax, which is measured by the difference between real incomes or utilities before and after imposing the tax taking into account how the tax leads prices to change. For instance, if 10% tax is imposed on sellers of butter, but the market price rises 8% as a result, most of the burden is on buyers, not sellers.
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the evanec company's next expected dividend, d1, is $3.99; its growth rate is 5%; and its common stock now sells for $31.00. new stock (external equity) can be sold to net $24.80 per share. what is evanec's cost of retained earnings, rs? do not round intermediate calculations. round your answer to two decimal places.
The cost of retained earnings of the Evanec Company for the conditions given above will be 17.86 percent.
The cost of retained earnings can be referred to or identified as the costs that can be ascertained using the amount of dividend distributed among the shareholders. These dividends are always paid out of the internal profits generated by a company over its revenues.
The calculation for the same will be done as below,
Cost of Retained Earnings = Dividend/Share Price + Growth Rate
Cost of Retained Earnings = 3.99/31 + 0.05
Cost of Retained Earnings = 0.1786
Therefore, the cost of Retained Earnings will be 17.86 percent.
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firms use to provide information about their product or to convince consumers to buy it. and when a company does a good job of this, its product develops a name.
Customers may be educated through advertising and personal selling, which is the greatest approach to persuading them to purchase. Regardless of age or economic level, your chances of making a sale are higher when you approach those who are most likely to utilize your product.
A sales strategy known as upselling aims to convince consumers to buy a more costly, upgraded, or premium version of the selected item or other add-ons in order to generate a larger scale.
The name of your product should be consistent with your larger brand name while yet conveying a distinct message to customers. Additionally, it must be memorable, discoverable (especially via search engines), distinct, comprehensible, and pertinent.
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as the owner of a small business with 70 employees that makes custom area rugs, nadine makes all of the buying decisions. nadine is most likely the
Nadine is the proprietor of a small company that employs 70 people and produces personalized area rugs. Most likely, the user is Nadine.
What the examples workers?A sales assistant at a store is an illustration of an employee. The worker is regarded as an employee because they must carry out their duties in a particular way, such wearing name badges and addressing customers in a particular way.
What do companies refer to as their staff?What do i call your staff when you say "staff"? Some businesses have choose to refer to their staff as something else than workers. They refer to them as team members, associates, or other more affable and unique names and titles.
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beta electronics issued 100,000 shares of no-par common stock at $2.50 per share. what is the journal entry to record this transaction?
Debit: 200000 in cash This transaction is noted in the journal entry Common Stock 200000.
What is the transaction's journal entry?The date, the amount to be credited and debited, a brief description of the transaction, the accounts involved, and other details pertinent to a specific business transaction are all included in each journal entry. Depending on the company, it might include a list of the impacted subsidiaries, tax information, and other details.
How are journal entries written down?Journal entries are typically made in the main ledger, but they can also be entered in a subsidiary ledger and subsequently rolled forward into the general ledger once they have been summarized. The company's financial statements are then generated using the general ledger.
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global pistons (gp) has common stock with a market value of million and debt with a value of million. investors expect a return on the stock and a return on the debt. assume perfect capital markets. a. suppose gp issues million of new stock to buy back the debt. what is the expected return of the stock after this transaction? b. suppose instead gp issues million of new debt to repurchase stock. i. if the risk of the debt does not change, what is the expected return of the stock after this transaction? ii. if the risk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part (i)?
Global pistons (GP) have common stock with a market value of a million and debt with a value of a million. investors expect a return on the stock and a return on the debt. assume perfect capital markets suppose gp issues million of new stock to buy back the debt.
A capital marketplace is referred to as a place in which savings and investments are accomplished between capital suppliers and those who're in want of capital. it's far, therefore, a place wherein various entities trade exceptional monetary devices. There are varieties of capital markets: primary market. Secondary marketplace.
A capital marketplace is an economic market in which long-time period debt (over a yr) or equity-backed securities are offered and sold, in contrast to a money market where quick-term debt is bought and offered.
Factors of a Capital market. character traders, industrial banks, financial establishments, insurance companies, commercial enterprise organizations, and retirement finances are a few huge providers of funds inside the market. traders offer cash proceeding to make capital gains while their funding grows with time.
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what is the difference between a vertical merger and a horizontal merger? which one is the justice department more likely to look at more carefully and why?
How enforcers look into and create plausible theories of harm to competition depends on the type of merger. The most dubious mergers are those that destroy an existing or potential rival.
For enforcers, vertical mergers are more challenging. when businesses that market comparable goods combine. Vertical merger: A union of businesses competition at various stages of the production process (between companies where one buys or sells something from or to the company). When two or more businesses that make the same product come together, it is known as a horizontal merger. A vertical merger occurs when businesses engaged in several forms of marketing or manufacturing come together.
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a high-end jewelry store like tiffany's sells fewer pieces of jewelry than a popular-priced store like kay jewelers. tiffany's makes up for lower volume by charging premium prices, which means that tiffany's is using a pricing strategy.
A high-end jewelry store like tiffany's sells fewer pieces of jewelry than a popular-priced store like kay jewelers. tiffany's makes up for lower volume by charging premium prices, yes its true tiffany's is using a pricing strategy.
When selling a product or service, a firm can employ a number of different pricing tactics. Senior executives must first analyze the company's price position, pricing segment, pricing capacity, and competition pricing reaction strategy in order to select the most successful pricing strategy. Pricing tactics and strategies differ from company to company as well as from different countries, cultures, and business sectors. Additionally, they fluctuate over time as markets, sectors, and overall economic conditions evolve. Pricing guidelines control how much companies charge for their goods. Pricing can be chosen to maximize profits from either the market as a whole or from each individual item sold. It can also be used to gain market share inside a market, to protect an existing market from new competitors.
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you buy $2,000 worth of equipment expected to last 15 years (with no salvage value). if the interest rate is 2.0%, what is the closest expected uniform annual cost (euac)?
The equation of EUAC is:
EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)
Expected Uniform Annual Cost (EUAC) show the life cycle values as an annualized estimate of cash flow instead of a lumpsum estimate of present price.
From the scenario, we were informed that
Purchased price = $ 2,000
Number of years = 15 years
The salvage value after 15 years = $0
The rate of interest annually = 2%
EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)
So, the equation of EUAC is
EUAC = 2,000(A/P,2%,15) - 0(A/F,2%,15)
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Assume current assets totaled $57,000 and the current ratio was 1.2 before the following independent transactions:
(1) Purchased merchandise for $6,000 on short-term credit.
(2) Purchased a delivery truck for $29,000. paid $3,000 cash and signed a two-year interest-bearing note for the balance.
Required:
Compute the current ratio after each transaction.
Transaction current ratio
1) ?
2) ?
Current ratio = Current assets / current liabilities.
1.2 = 57,000 / x. x = 57,000 / 1.2
Current ratio = 57,000 / 47500.
Current ratio = 1.2
How Does the Current Ratio Work?
The ability of a business to pay short-term or obligations that are due within a year is gauged by the current ratio, a liquidity ratio. It explains to analysts and investors how a business can use its balance sheet's current assets to their fullest potential in order to pay off all of its current liabilities and other payables.
Generally, an acceptable current ratio is one that is in line with the industry standard or just a little bit higher. A current ratio below the sector average might be a sign of increased default or distress risk. Similarly, if a company's current ratio is significantly higher than that of its peer group, it may not be using its resources as effectively as it should.
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josh, the owner of a software company, is facing cash flow problems. to control the cash outflow, he avoids paying the bills to his vendors. after much delay, he sends a check in payment but intentionally forgets to sign the check. to prevent the cash from going out of his business, josh is applying the strategy of
To prevent the cash from leaving his business, josh applies the strategy of Check kiting.
Since, by delaying payment and not signing the check, Josh is trying to prevent the money from leaving his business, which is an example of check kiting.
What is Check kiting?Is a form of bank fraud where someone will write a check from a bank account with insufficient funds, knowing that the bank is unlikely to catch it and will likely accept it. The person will then transfer the cash from this account to another account before the bank discovers the fraud.
This allows the person to take advantage of the float time between the two banks and use the money in the second account before the bank discovers the fraud. This is a very serious form of fraud, as it can cost banks millions of dollars and can also be used to cover up other forms of fraud.
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janell is always asking for the source of comments or research to back up assumptions made at team meetings. ultimately, the team creates better solutions because of this. what role is janell playing as a team member?
Janell is always asking for the source of comments or research to back up assumptions made at team meetings. ultimately, the team creates better solutions because of this. The dissenter role is janell playing as a team member.
Sudies is "creative and systematic work undertaken to increase the inventory of information". It includes the collection, company and analysis of proof to increase know-how of a subject, characterised by means of a specific attentiveness to controlling resources of bias and error.
Research is a procedure of systematic inquiry that includes series of facts; documentation of important facts; and analysis and interpretation of that statistics/records, according with suitable methodologies set by way of particular professional fields and academic disciplines.
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The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 2016, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, 2016, balance sheet date, the share price declined to $11 per share. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, 2016. Refer to the Chart of Accounts for exact wording of account titles. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
The entries to acquire the investment on September 12 is $4,61,500 And the fair value on December 31,2016 is $1,06,500
Date Description Debit Credit
Sept 12 Investment in Bengals = $13 x 35,500 $4,61,500
2016 Cash $4,61,500
* to document the acquisition of 35,500 shares
in Bengals Inc. at $13 per share
Dec 31 Unrealized Holding Gain or Loss - OCI = $13 - $10 = $3 per
2016 share × 35,500 $106,500
Valuation allowance for available-for-sale
investments $106,500
*To document the fair value adjustment for an investment that is offered for sale.
B. Other Comprehensive Income, not the income statement, is where the unrealized gain or loss for investments that are available for sale is reported. Only unrealized profits or losses on trading investments are included in the income statement.
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If the economy is experiencing high rates of inflation due to a new housing bubble, what effects would an expansionary monetary policy have on the economy?.
What would happen to the economy if an expansionary monetary policy was implemented if there were high rates of inflation because of a fresh housing ? Although unemployment would rise, inflation would decline.
What characteristics characterize an economy?An economy is a network of interconnected consumption and production activities that ultimately decide how resources are distributed within a community. The needs of persons who live there and operate there are met through the production and consumption of products and services as a whole.
What is the name of the current economic system?
The American economy is diverse, displaying elements of both socialism and capitalism. When it comes to the utilization of capital, such a mixed economy welcomes the free market, but it also permits government involvement for the benefit of the general populace.
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Data Marketing, Inc., registers its trademark as provided by federal law. After the first renewal, this registration
A. is renewable every ten years
B. runs for the life of the corporation plus seventy years
C. runs forever
D. is renewable every twenty years
Data Marketing, Inc., registers its trademark as provided by federal law. After the first renewal, this registration is renewable every ten years.
What a trademark entails?Any word, phrase, symbol, design, or combination of these that distinguishes your goods or services might be considered a trademark. Customers use it to identify you in the marketplace and set you apart from your rivals. Both trademarks and service marks can be referred to as "trademarks" in this sentence.
When does a trademark vs. copyright differ?The rights of those who produce artistic, musical, theatrical, and other types of intellectual works are generally protected by copyright laws (like history tests, and software code). The use of a company's name, product names, slogans, and brand identity is protected by trademarks.
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management's refusal to let workers enter a plant or building to work is a: question 25 options: 1) boycott 2) reverse strike 3) management strike 4) lockout 5) union-busting approach
Management's refusal to let workers enter a plant or building to work is option 4) lockout.
A lockout is a state of affairs during which employers shut an area of labor and stop employees from coming into it till the employees settle for the employer's new proposals on pay or conditions of labor. [business] The opposition might resume if no new contract agreement is signed.
Strike action, conjointly referred to as labor strike, labour strike, or just strike, may be a job action caused by the mass refusal of workers to figure. A strike typically takes place in response to worker grievances. Strikes became common throughout the commercial Revolution, once mass labor became vital in factories and mines.
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your company is considering implementing nist 800-53. which of the following terms refers to the process of modifying security controls to align with the mission of the organization?
Your company is considering implementing NIST 800-53. Tailoring refers to the process of modifying security controls to align with the mission of the organization.
The tailoring process is used for modifying and aligning the applicable security controls. These security controls apply to specific functions in the business such as organizational or information systems. It is crucial for the security of data in a business as it modifies the security control baseline to align with the organization's mission.
The tailoring process identifies and assigns common security controls in initial baselines. If required, specific security controls could also be initiated. For instance, the tailoring process might suggest some common security controls in the main brand of the brand but the same set of controls might not be useful in the branch in a remote location.
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according to the textbook, the comfort keepers business idea lends itself to franchising because the . company has the ability to grow profitably and has a good trademark company's business concept is easy to teach and individual comfort keeper outlets are inexpensive to open and operate company has new technology to introduce to the marketplace company has intellectual property and the ability to grow quickly company has a good trademark and a good business method
Consistent with the textbook, the comfort keepers commercial enterprise concept lends itself to franchising because the organization has the capability to develop profitably and has a good trademark enterprise's enterprise concept is straightforward a big gain that franchisees acquire while starting a franchise is an emblem of reputation.
It permits all aspiring marketers to start a new business without incurring the same degree of threat as an emblem-new venture. a number of the major benefits of the franchise are: Key business dating already exists, The enterprise is already hooked up, A help system in the area, and less difficult financing.
Franchising is a commercial enterprise advertising and marketing approach to cover the maximum market percentage. Franchising is a business dating between entities in which one birthday celebration permits some other to promote its products and intellectual belongings. as an instance, several speedy meal chains like Domino's and Mcdonald's function in India thru franchising.
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roxy operates a dress shop in arlington, virginia. lisa, a maryland resident, comes in for a measurement and purchases a $3,400 dress that is shipped to her maryland residence using a common carrier. roxy’s total maryland sales are $44,200 on 15 transactions. assuming that virginia's sales tax rate is 5 percent and that maryland's sales tax rate is 7 percent, what is roxy's sales and use tax collection obligation?
Roxy's sales and use tax collection obligation is $50,000.
What is an obligation?Whether it be a moral or legal requirement, an obligation is a course of action that one must follow. The freedom of people is restricted by obligations. Obligated parties may elect to act in accordance with their obligations voluntarily. When there is a choice between doing what is right and wrong from a moral standpoint, obligation exists. There are other normative contexts where obligations exist as well. These contexts include those involving etiquette, social obligations, religious obligations, and possibly even political obligations. Everybody has different obligations; for instance, a politician typically has many more than the average adult citizen, who in turn has more obligations than a child.
Tax obligation= $1,000,000*5%=50,000
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The decision rule for segment elimination is to consider eliminating a segment if the segment revenues are less than the segment_expenses. a Inescapable b. Avoidable c. Unavoidable Od. Incremental
The decision rule for segment elimination is to consider eliminating a segment if the segment revenues are less than the segment expenses Inescapable.
Segment stripping means that SQL Server (when accessing a column store index) only reads segments that contain the requested data. You can think of it like dropping partitions when working with partitioned tables. However, the deletion here is at the level of the ColumnStore segment.
Segment revenue is segment revenue less segment expenses. It is commonly used to assess and compare the performance of corporate segments considered investment centers of companies.
Segment operating income is a measure of earnings used by management and excludes certain amounts not allocated to specific reporting segments.
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If a perfectly competitive firm and a monopolistic competitor in long run equilibrium face exactly the same demand and cost curves, then there is high probability that the former will earn zero economic profits, but the latter will earn positive economic profits. both will earn zero economic profits, but the former will attain lower unit costs than the latter. both will earn zero economic profits, but the latter will attain lower unit costs than the former. both firms will earn zero economic profits, and attain the lowest possible unit costs. neither form will earn zero economic profits, but both will attain the lowest possible unit costs.
A perfectly competitive firm and a monopolistic firm in the long-run equilibrium face exactly the same demand and cost curves, then they will also earn zero economic profits, and attain the lowest possible unit costs (D).
Economic profit is the total revenue minus the total cost of a product produced by a firm. Cost in this term include the measurement of oppotunity cost.
Perfectly competitive firm is a firm in a market with many buyers and sellers and the price of products represents the equililbrium point between supply and demand. A firm in this market has almost no power to affect the product price.
In the long-run, a perfectly competitive firm will earn 0 (zero) economic profit, while earn accounting profits. This condition happens because entry and exit barriers for firms in perfect competitive market is low. Many firms can easily enter and exit the market.
Monopolistic firm is a firm in a market where many firms are producing similar but differentiated products. The entry barriers for thiis market is relatively low and the decisions of any firm do not dirrectly affecting its competitor within the market.
In the long-run, monopolistic firm will earn zero economic profits because the low entry barriers easily allows new competitors to join the market and reduce an old-player firm's demand. This condition push a firm to make its demand curve to be more elastic. Any change in the demand curve will also affecting a firm's marginal revenue curve as well. This situation then leads a firm to no-longer make an economic profit condition.
However, to ensure their sustainability in their respective markets, both firms will attain the lowes possible unit costs to earn accounting profits.
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Complete the following statements below regarding how each can be used in determining the QBI deduction.a. Modified taxable income is taxable income [before] the deduction for qualified business income, [reduced by any net capital gain] .b. Qualified Business income (QBI) is defined as the ordinary income less ordinary deductions a taxpayer earns from [a qualified trade or business] conducted in the United States by the taxpayer.c. A qualified trade or business is any trade or business [excluding] providing services as an employee. In addition, a "specified services" trade or business [is not] a qualified trade or business.d. Indicate whether the following are considered a "specified service trade or business:Services consisting of investing and investment management: [Yes]Performance of services in law: [Yes]Performance of services in accounting: [Yes]Performance of services in the performing arts: [Yes]Operating a retail furniture store: [No]Performance of services in athletics: [Yes]
A non-corporate entity; a partnership, a sole proprietorship, or a S corporation; whether a taxpayer takes tax standard deduction or itemsizes their deductions, the smaller of 20% and 20% from.
What is income and example?Income is the cash that a person or organization receives in return for working, providing a good or service, or using capital. People normally make money through wages or salaries, whereas corporations make money by selling products or services that cost more costs to produce them.
What are income types?Earned, passive, or investment earnings are the three basic types of income. Earned income includes includes salaries, tips, commissions, and wages. Rental properties, royalties, and limited partnerships are now all possible sources of passive or unearned income. Income, dividends, or capital gains on investments are all types of portfolio or investment income.
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Oil prices are denominated in terms of _____ in international commodities markets.
Oil prices are denominated in terms of dollars in international commodities markets.
What components constitute a business?A business is an organization or enterprising body that carries out commercial, industrial, or professional activity. There are two types of businesses: for-profit companies and nonprofit organizations. Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorships.
What are the principles of a business?Learning the fundamentals is the first step you should take to succeed in business. By conducting market research and comprehending the needs and expectations of your clients, you may create a successful company, but first you must become proficient in the essential business skills.
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________ reflects the idea in e-commerce that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts.
In e-commerce, the concept of crowdsourcing reflects the notion that many individuals can make more informed decisions than one person or even a small group of specialists on a variety of issues or products.
Why does e-commerce exist?A network of online sales is e-commerce. The buyer can place a large order using this efficient method of purchasing, which eliminates the trouble and makes the process quicker and smoother.
What are B2C, C2C, and B2B?Four business models—B2C (Business to Consumer), Business to customer (Business to Business), Business to consumer (Consumer to Consumer), and C2B—have received a lot of attention as globalization, consumerism, and trading have progressed (Consumer to Business). These all have a history of being the most effective company models.
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if equipment is purchased for research and development, but has an alternative future use, the cost of the equipment is
The cost of the technology is capitalized & depreciated as R&D expense if it is purchases for research and development but has a different future application.
What role does purchase have in accounting?In accounting, the expense of making purchases within a time period with the intention of reselling them in the regular course of business is called as a purchase. Therefore, as purchases are a type of expense, they are included in income statement as part of the cost of products sold.
What is the entry for purchases?A. Purchases Account: Goods are referred to as Purchases A/c when they are paid for with cash, a credit card, donated, misplaced, or taken for personal use. Journal entry: Items paid for with cash.
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when there is a tight money policy, a reduction in the money supply growth increases interest rates and that, in turn, business investment and ndp.
Contractionary monetary policy, also known as tight monetary policy, reduces a country's money supply to control inflation and maintain economic equilibrium.A central bank will probably try to slow the growth of money and prices by raising interest rates.
When there is an increase in the money supply, what happens to interest rates?
The Central Bank, also known as the authority in charge of monetary policy, is attempting to reduce the demand for money and slow the rate of economic expansion through tight monetary policy.Typically, this includes expanding financing costs.In most cases, the aim of tight monetary policy is to lower inflation.
What effect does a shrinking money supply have?
By restricting the flow of money throughout the economy, tight monetary policy has the implication of lowering inflation.By raising short-term interest rates, borrowing money becomes more costly.As a result, the central bank of a nation takes corrective action to prevent hyperinflation in the economy.
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The following data relate to direct materials costs for February:
Materials cost per yard: standard, $1.91; actual, $2.04
Yards per unit: standard, 4.62 yards; actual, 4.98 yards
Units of production: 9,000
The direct materials quantity variance is
a.$6,188.40 favorable
b.$6,188.40 unfavorable
c.$6,609.60 favorable
d.$6,609.60 unfavorable
The direct materials quantity variance is B. $6,188.40 unfavorable.
What is direct materials?Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product. Items designated as direct materials are usually listed in the bill of materials file for a product.
How to calculate the direct materials quantity variance?
Direct material quantity variance
= (standard quantity - actual quantity) * standard price
Standard quantity = 9,000 * 4.62 = 41,580
Actual quantity = 9,000 * 4.98 = 44,820
Direct material quantity variance
= (41,580 - 44,820) * $1.91
= $6,188.4 Unfavorable
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