Javonte Co. set standards of 2 hours of direct labor per unit of product and $16.10 per hour for the labor rate. During October, the company uses 13,000 hours of direct labor at a $211,900 total cost to produce 6,700 units of product. In November, the company uses 17,000 hours of direct labor at a $277,950 total cost to produce 7,100 units of product.

AH= Actual Hours
SH =Standard Hours
AR =Actual Rate
SR =Standard Rate

Required:
a. Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable.
b. Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

Answer:

Part a.

October Labor Rate Variance   (2600) unfavorable

October Labor Efficiency Variance   6440 favorable

Labor Cost Variance  For October  3840 favorable

November Labor Rate Variance  (4250) unfavorable

November Labor Efficiency Variance (45080) unfavorable

Labor Cost Variance  For November 49330 unfavorable

Part b.

Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.

Explanation:

Direct Labor Rate Variance For October

                                           Time *        Rate    =        Amount

Actual Hours Worked       13000 *      16.3 actual              = 211900

Actual Hours Worked      13000 * 16.10 standard         =  209300      

Labor Rate Variance                         0.2                           (2600) unfavorable

When actual rate is greater than the standard rate the variance is unfavorable.

Direct Labor Rate Variance For November

                                           Time *        Rate    =        Amount

Actual Hours Worked       17000 *      16.35 actual              = 277950

Actual Hours Worked      17000 * 16.10 standard         =  273700      

Labor Rate Variance                         0.25                           (4250) unfavorable

When actual rate is greater than the standard rate the variance is unfavorable.

Direct Labor Efficiency Variance for October

                                           Time *        Rate    =        Amount

Actual Hours Worked       13000 *      16.1 standard             = 209300

Standard Hours Allowed      13400 * 16.10 standard         =  215740  

                                            ( 2* 6700)                                                        

Labor Efficiency Variance              400                               6440 favorable

When actual hours are less than the standard hours allowed the variance is favorable.

Direct Labor Efficiency Variance for November

                                           Time *        Rate    =        Amount

Actual Hours Worked       17000 *      16.1 standard             = 273700

Standard Hours Allowed      14200 * 16.10 standard         =  228620

                                            ( 2* 7100)                                                        

Labor Efficiency Variance            2800                           (45080) unfavorable

When actual hours are more than the standard hours allowed the variance is unfavorable.

Labor Cost Variance  For October

Standard hours * standard rate- Actual hours * actual rate

13400 * 16.10-  13000 *      16.3

= 215740  -211900

=3840 favorable

Labor Cost Variance  For November

Standard hours * standard rate- Actual hours * actual rate

14200 * 16.1 -  17000 * 16.35

= 228620  - 277950

=49330 unfavorable

Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.

45080> 5% of 277950

5% of 277950 = 13897.5

13897.5 > 45080

Matlock Company uses a periodic inventory system. Its beginning inventory consists of 50 units that cost $ 34 each. On June 3, the company purchased 150 units at $ 34 each. On June 15, the company sold 125 units at $ 50 each. Thecompany closes the books on June 30. The physical counts indicate that 75 units are available in the warehouse on June 30. Journalize the June transactions.

rationing a product by coupons when recipients are allowed to sell them will cause
​

We have created the following Planned Production Orders over the planning period: 150 Product A We have the following Raw Materials on hand and available to be dedicated to these Planned Production Orders: Enough Raw Materials to product 90 Product A There are Purchase Orders at our suppliers for the following Raw Materials: 20 Product A
How many products should we order on New Purchase Orders with our suppliers?

If investing $1,000 for a year, how frequently is simple interest paid on the principal investment?
daily
annually
never
hourly

An advantage of a corporation is that
A
owners pay fewer taxes than owners of other forms of business.
B
the business is subject to little government regulation.
с
owners have limited liability for debt.
D
owners have direct and immediate control over daily management of the business.

Nemo Gill was hired by the Spectacular Tropical Aquarium and agreed to submit any disputes arising out of his employment to binding arbitration. Nemo was fired when he became a Rastafarian and urged his coworkers to become vegetarians and smoke ganja. Without waiting for the results of the arbitration, Nemo filed a complaint alleging religious discrimination with the EEOC. The EEOC quickly filed a lawsuit on his behalf. Spectacular moved to have the EEOC's lawsuit dismissed on the grounds that Nemo signed a valid arbitration agreement.

a. The EEOC cannot bring a lawsuit enforcement action against Spectacular because Nemo signed the mandatory arbitration agreement.
b. The EEOC can bring a lawsuit enforcement action against Spectacular despite Nemo's agreeing to arbitration.
c. The EEOC cannot bring a lawsuit enforcement action against Spectacular because Nemo did not wait for the results of the arbitration.
d. The EEOC cannot bring a lawsuit enforcement action against Spectacular because Nemo's urging his co-workers to smoke ganja and become vegetarians had nothing to do with his job.

Sean and Yvette Durand live in Swarthmore, PA. Yvette's father, Bob, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.

a. Yvette's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
b. Sean buys a sweater made in Guatemala.
c. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
d. Sean's employer upgrades all of its computer systems using U.S.-made parts.
e. Yvette gets a new refrigerator made in the United States.

how can a business deal with employees who have lack of focus and future goals ?​

Mariana works for a large pharmaceutical company. Last week she visited with an advisor at the nearby university because her employer encourages workers to continue their education. The company even gives employees time off to go to academic-related appointments during regularly scheduled work hours. One would assume that management at Mariana's company values the results of the Hawthorne studies, more so than traditional scientific management principles.
a. true
b. false

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Explain what boundaries are and why they are important in decision-making.

How did the Internet help give rise to the “sharing economy?”

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $285,000, variable expenses of $147,600, and traceable fixed expenses of $68,800. The Alpha Division has sales of $595,000, variable expenses of $329,800, and traceable fixed expenses of $129,500. The total amount of common fixed expenses not traceable to the individual divisions is $130,200. What is the company's net operating income

9. Matilda just graduated from college. In order to devote all her efforts to college, she did not hold a job. Matilda just graduated from college. In order to devote all her efforts to college, she did not hold a job. She is going to cruise around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate ____________ and the labor force participation rate ______________.

The use of planning techniques is an example of

Cale Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Cale sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Cale that cost Cale $100 to buy from manufacturers, Cale would charge the hospital $107 to purchase these supplies.For years, Cale believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Cale decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:Activity Cost Pool (Activity Measure) Total Cost Total ActivityCustomer deliveries (Number of deliveries) $420,000 5,000 deliveriesManual order processing (Number of manual orders) 624,000 8,000 ordersElectronic order processing (Number of electronic orders)170,000 10,000 ordersLine item picking (Number of line items picked) 675,000 450,000 line itemsOther organization-sustaining costs (None) 650,000 Total selling and administrative expenses $2,539,000 Cale gathered the data below for two of the many hospitals that it serves—Georgetown and Providence (each hospital purchased medical supplies that had cost Cale $38,000 to buy from manufacturers): ActivityActivity Measure University Memorial Number of deliveries 16 28Number of manual orders 0 49Number of electronic orders 18 0Number of line items picked 190 210Required:1. Compute the total revenue that Cale would receive from Georgetown and Providence.2. Compute the activity rate for each activity cost pool.3. Compute the total activity costs that would be assigned to Georgetown and Providence.4. Compute Cale's customer margin for Georgetown and Providence.

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Dwayne Wade Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $12,000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year.
What amount will the company receive at the time the lease expires?

A businessperson is setting up a new automatic car wash and is choosing between two fully automated machines. The first machine can process up to 2,000 cars per month at a marginal cost of $1 per car. The second machine can also process up to 2,000 cars per month but at a marginal cost of $0.50 per car. The monthly lease for the machine with the higher marginal cost is $1,200. The monthly lease for the machine with the lower marginal cost is $1,590 The car wash can sell car washes for $8 per car. 1. Suppose the businessperson chooses to lease the machine with the higher marginal cost for the first month and does indeed wash 2,000 cars that month. The businessperson earned profits of____________ $ in the first month. 2. Suppose now the businessperson chooses to lease the machine with the lower marginal cost for the second month and again washes 2,000 cars that month. The businessperson earned profits of __________$ in the second month. 3. The car wash would have to wash ____________cars or more per month in order to justify paying the higher-priced machine lease.

Why would it be economically efficient to require a natural monopoly LOADING... to charge a price equal to marginal​ cost? A. Economic efficiency requires natural monopolies to earn zero economic profits. B. Economic efficiency requires the total benefit of producing a good to equal the total cost of producing it. C. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the average cost of producing it. D. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers greater than the additional cost of producing it. E. Economic efficiency requires the last unit of a good produced to provide an additional benefit to consumers equal to the additional cost of producing it.

WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou:
As of January 31 As of February 28
Inventory account balances:
Raw materials inventory $42,000 $30,000
Work in process inventory $9,200 $20,600
Finished goods $56,000 $33,500
Additional information for the month ended February 28:
Raw materials purchased $198,000
Factory payroll $150,000
Actual factory overhead costs:
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs $13,500
Sales $1,100,000
Predetermined overhead rate (based on direct labor costs) = 55% of DL costs
Compute the following amounts for the month of February. You must show all of your work, either using formulas or using T-accounts.
a. Cost of direct materials used.
b. Total manufacturing costs.
c. Cost of goods manufactured.
d. Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
e. Gross profit.
f. Overapplied or underapplied overhead.

Crane Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31.

Nov. 1 Loaned $66,600 cash to C. Bohr on a 12-month, 6% note.
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 6% note.
Dec. 16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
Dec. 31 Accrued interest revenue on all notes receivable.

Required:
Journalize the transactions for Crane Company

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