Delicious Food Products is famous for its frosted fruit cake
The main ingredient of the cake is dried fruit, which Delicious purchases by the pound. In addition, the production requires a certain amount of direct labor. Delicious uses a standard cost system, and at the end of the first quarter, there was a favorable direct materials cost variance. Which of the following is a logical explanation for that variance?
A) The production manager negotiated a lower wage package for production staff, bringing direct labor costs down.
B) The factory lost two experienced workers at the beginning of the quarter, and their replacements worked at a much slower pace during their training period.
C) The purchasing manager was able to secure a volume discount on dried fruit, purchasing the fruit for less than the amount set by standard.
D) The production staff changed the work flow process so that there was less wastage of direct materials during production.
C
You might also like to view...
A(n) ______ is a judgement regarding a person’s motives or personality as a perceived explanation for the cause of that person’s behavior or performance.
a. feedback b. learning situation c. attribution d. performance review
Taxation is a financial force in that
A. it is not controlled by the firm. B. businesses are compelled by foreign governments to pay taxes. C. if the firm can achieve a lower tax burden than its competitors, it can generate higher revenues, and then lower its prices or pay higher wages and dividends. D. governments that enact taxes are formal institutions that enforce tax law via force.
The model was entered into an Excel spreadsheet and the table below shows part of the sensitivity report. Calculate the expected per unit profit for the three services
Variable Cells Final Reduced Cell Name Value Gradient $C$3 P1_ 45.5694 0 $D$3 P2_ 51.5 0 $E$3 P3_ 58.8929 0
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows: Variable costs: Manufacturing$450,000 Selling and Administrative 100,000 Total variable costs $550,000 Fixed costs: Manufacturing$300,000 Selling and Administrative 180,000 Total fixed costs 480,000 Total costs $1,030,000 The average amount of capital invested in the laptop product line is $900,000 and Longwood's target return on investment is 18%. What price must Longwood charge if the company uses cost-plus pricing based on total cost?
A. $900. B. $1,192. C. $1,000. D. $868. E. None of the answers is correct.