Answer: b. No, because Wright's letter was a counteroffer to the original offer.
Explanation:
Contract is issued based on a binding agreement between two parties, the employer and the employee. The employer gives the terms and conditions which embeds the allowances, while the employee receives the letter and is either expected to give a response there or after a specific period of time, the letter cannot be changed by the employee after delay but there could be negotion within the time frame given. Wright had to offence to be blamed for; 1) he delayed the response. 2) Requesting a higher amount after a long while.
Trident's corporate headquarters has assessed the performance of its various unrelated business units. In allocating money across these units, Trident uses its general organizational competencies to:
Answer: Increase value through internal capital market
Explanation: The general organizational competence may be regarded as the skills, personalities or industrial expertise showcased or exhibited by employees of a firm particularly it's top ranking workers who are involved in critical decision making. These competencies could help foster strategic plans required to accelerate the growth and development of the organization. Venturing into different markets by organizationa is called unrelated diversification which is the case with Trident as described in the scenario above, the method of resource and funding allocation on the basis performance of each of the business performed by the corporate headquarters which is achieved through general organizational competence has helped increase organization's value through internal capital markets.
Mark thinks that if he asks for a $50-a-week raise, he will definitely get it. He really wants a $75-a-week raise and thinks his chances of getting a raise of that amount are about 25 percent. Expectancy value theory would predict that Mark will ask for a ________-a-week raise, and classic behaviorism would predict that he will ask for a ________-a-week raise.
Answer:
$50 ; $75
Explanation:
Expectancy value theory is the theory that shows and predict the individual attitude towards things. here the expected derives that someone is expected i.e how likely the individual wants that thing
Here in the given situation, the expectancy value theory predict the mark should ask for $50 for raising the week while on based on the classic behaviorism it would predict a $75-week raise
Firms that follow variable-cost pricing Multiple Choice sell their products at lower net prices abroad than in the domestic market. ensure that no unit of a similar product is different from any other unit in terms of cost. tend to have high variable costs relative to fixed costs. often do so to maximize revenue by matching demand with a limited supply. ensure that each unit bears its full share of the total fixed and variable cost.
Answer:
Sell their products at lower net prices abroad than in the domestic market
Explanation:
Variable costing is a product costing method where only the variable manufacturing cost like the cost of direct materials ,labor and the variable manufacturing overhead are factored into the cost of production. This does not consider a complete cost like the absorption method of costing and as a result , the final overall cost is lower,
Using variable cost males it possible to sell products at lower net prices abroad compared to the domestics market as the tax laws of various country requires absorption method , hence it is not captures using variable costing.
Lindsay is Jon's manager and calls him into her office after everyone else has gone home for the day. She closes the door and tells Jon that he is a thief and that he must return items that he stole from the company. In fact, Jon is extremely honest and has never stolen anything in his life. He is extremely upset and starts to feel sick.
A. Lindsay has committed libel.
B. Lindsay has committed disparagement.
C. Lindsay has committed slander.
D. Lindsay has not committed a defamation tort.
Answer: Lindsay has not committed a defamation tort
Explanation:
Defamation is when the reputation of an individual in being damaged. In s case whereby one believes that his or her reputation has being damaged by another person, the person sue under the defamation theory.
In the analysis above, we can deduce that Lindsay has not committed a defamation tort.
To support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules. Obviously the demand for these items is driven by the production schedule for the computers. What is the term used to describe demand for these parts?
Answer:
Dependent demand.
Explanation:
In order to support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules.
Hence, the term used to describe demand for these parts is dependent demand.
A dependent demand can be defined as the situation whereby the demand for a specific product or item occurs as a result of the demand for another product or item. The two products are known as the lower level or child item and the higher level or parent items.
This simply means that, the components that goes into a computer are the lower level or child items while the computer itself is the higher level or parent item.
Frahm Company incurred a first quarter operating loss before income tax effect of $4,000,000. This is a normal occurrence for Frahm because of seasonal fluctuations. Experience has demonstrated the income earned during the remaining quarters far exceeds the first quarter losses each year. Frahm estimates its annual income tax rate will be 30 percent. What net loss should Frahm report for the first quarter?
Answer: $2,800,000
Explanation:
From the question, we are informed that Frahm estimates its annual income tax rate will be 30 percent and incurred a first quarter operating loss before income tax effect of $4,000,000.
The net loss should Frahm report for the first quarter will be:
= $4,000,000 - (30% × $4,000,000)
= $4,000,000 - (0.3 × $4,000,000)
= $4,000,000 - $1,200,000
= $2,800,000
When you write a cover letter, which of the following should you do?
Repeat as many points from your résumé as
you can. Lointing out how extensive your
experience is.
Show that you have researched the company
and are interested in contributing your skills
to their business.
o Explain exactly what you did in other jobs.
List your educational degrees.
Answer:
Show that you have researched the company and are interested in contributing your skills to their business.
Explanation:
When you write a cover letter, Explain exactly what you did in other jobs. List your educational degrees. The correct option is C. The first paragraph of your cover letter should pique the hiring manager's interest and compel them to continue reading.
What are a cover letter and example?In a cover letter for a job application, you can introduce yourself personally and argue why hiring you would be wise. Include specific examples from your prior experience that show you are qualified for the position in your cover letter, which should be three paragraphs or less long.
A one-page business letter known as a cover letter is submitted with your resume when you apply for a job. Your cover letter should serve as a persuasive essay that explains to the employer why you are a strong candidate for the position.
Thus, the ideal selection is option C.
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There are 120 mangoes in a basket and 168 mangoes in another basket.
Find the greatest number of mangoes which are to be taken out at a time
from each basket so that both of them will be emptied simultaneously.
Answer:
The greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket
Explanation:
Given that the number of mangoes in one basket = 120 mangoes
Also, the number of mangoes in another basket = 168 mangoes
The greatest number of mangoes, X and Y that are to taken out from each basket so that both of them will empty simultaneously is found as follows;
We note that the ratio of the number of mangoes in both baskets are;
120:168 = 5:7
Therefore, we have;
5 × Y = 120
Y = 20/5 = 24
Similarly, we have;
7 × X = 168
X = 168/7 = 24
We can take 5 mangoes from one basket and 7 mangoes from the other basket 24 times, for both mangoes to empty the same time
We can also take 5×12 = 60 mangoes twice from one basket and 7 × 12 = 84 mangoes twice from the other basket to empty the baskets
We can also take 120 mangoes one from one basket and 168 mangoes one from the other basket to empty the baskets.
Therefore, the greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket.
Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. He has the option of renting out the coffee shop for $80,000 per year, and he has three outside offers from competitors to work as a senior barista at Starbucks (for an annual salary of $30,000), at Simon's coffee house (for an annual salary of $40,000), and at Peet's coffee shop (for an annual salary of $60,000). He can only hold one job at a time. What should Chad do?
Answer:
Explanation:
Option 1
Revenue from coffee -300,000
Cost of sales - 60,000
Salaries - 60,000
Net income 180,000
Option 2
Rental income - 80,000
Option 3
Rental income - 80,000
Salary at Starbuck- 30,000
110,000
Option 4
rental income 80,000
Salary at Simon 40,000
120,000
Option 5
Rental income 80,000
salary at Peet 60,000
140,000
Looking at all the options before Chad , his highest income compared to others options would come form running his own coffee shop,which is 180,000 . Therefore , it is advised that he should continue to run his own shop.
If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports Group of answer choices increase which shifts aggregate demand right. increase which shifts aggregate demand left. decrease which shifts aggregate demand right. decrease which shifts aggregate demand left.
Answer: decrease which shifts aggregate demand left
Explanation:
Net exports is calculated when the value of a nation's total imports is deducted from the value of the nation's total exports.
When the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports decrease which shifts aggregate demand left. This is because due to the appreciation, goods that are made in other countries, that's the import will become cheaper and import rises while export reduces.
Bob has been training with you for three months. He has lost 15 pounds (7 kg) and has changed his eating habits. A new position with his company is going to require him to travel around the country almost every week. In terms to eating healthy in restaurants, what information would be most beneficial to him
Answer: Select smaller portions, order grilled items vs. fried, and limit sauces
Exercise often
Explanation:
Dieting asides it involving food has great discipline that is most important. In as much as an individual stops some meal or limit taking some, he needs to be consistent in the decision to stick by appying discipline in eating irrespective of their location, with the goal that was in the mind when the process began. Bob would have to continue with the same routine of food that made him loose weight and what I'll recommend for him would be Select smaller portions, order grilled items vs. fried, and limit sauces. Then, exercise often.
A member of the city commission insists that the city's internal service fund prepare and submit a budget for commission approval. The commissioner argues that it is only through the budget that the commissioners will be able yo ensure control over the internal service fund. Do you agree or disagree with the commissioner's argument
Answer:
Disagree
Explanation:
In simple words, I will differ with the statement, as I feel that the City Commission will be in a position to monitor the cash flow inside the service delivery resources by providing the expenditure.
There are various sources such as frequent auditing as well as various approvals that has to go through the high command, for using the funds generate.
Thus, the commissioners is arguing wrong perspective with the council.
Compute the MIRR statistic for Project I and note whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 15 percent. Project I
Answer:
13%
Explanation:
The computation of MIRR is shown below:-
=MIRR({-1000;400;300;200;300;50},15%,15%)
= 12.666%
or
= 13%
Since the MIRR is 12.67% and the appropriate cost of capital is 15% so the project should be rejected as it is less than the cost of capital
For more clarification please find the spreadsheet so that we make more understand.
An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remains the same, what would happen to the objective risk if the number of exposures were to increase to 1 million? A) It would decrease to 1 percent. B) It would decrease to 5 percent. C) It would remain the same. D) It would increase to 20 percent.
Answer:
A) It would decrease to 1 percent.
Explanation:
Given that:
Objective risk for 10,000 exposures = 10%
The objective risk could be explained to mean the actual loss incurred within a given period. The objective risk also decreases as the sample increases, in this case as the number of exposure increases, the exposure risk decreases.
In th question above, with an exposure value of 10,000; objective risk is 10%
When the exposure increases to 1,000,000
(10,000 / 1,000,000) * 100%
0.01 * 100%
= 1%
The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the
Answer:
Mars Wrigley Integrated Firm
Explanation:
This acquisition provided the extended reach to the company, as with this merger of both the companies, there are certain assured benefits:
1) Increase in sales value by selling at a price higher than the prevailing price in the market, or
2) Decreasing the cost of product manufacturing as prevailing in the industry for that product.
This joint would automatically gain the major share in the market as with increase in profits and diversification in providing goods, expands the company in all respects.
Jessica invested her savings in two investment funds. The amount she invested in Fund A was $8000 less than the amount she invested in Fund B. Fund A returned a 2% profit and Fund B returned a 8% profit. How much did she invest in Fund B, if the total profit from the two funds together was $2140
Answer:
23,000
Explanation:
Jessica invested her savings in two investment funds
The amount that she invested in fund A was $8000 than the amount invested in fund B
A + B = -8000.......... equation 1
Fund A returned 2% profit and fund B returned 8% profit
2/100= 0.02 , 8/100= 0.08
0.02A + 0.08B= 2140.............equation 2
From equation 1
A -B= -8000
A= -8000+B
Substitute -8000-B for A in equation 2
0.02(-8000+B) + 0.08B= 2140
-160+0.02B + 0.08B= 2140
-160 + 0.1B= 2140
Collect the like terms
0.1B= 2140+160
0.1B= 2300
B= 2300/0.1
B= 23,000
From equation 1
A-B= -8000
A= -8000+B
Substitute 23,000 for B
A = -8000+23000
A= 15,000
Hence Jessica invested 23,000 in fund B
An increase in the money supply will: Group of answer choices increase interest rates and increase the equilibrium GDP. lower interest rates and increase the equilibrium GDP. increase interest rates and lower the equilibrium GDP. lower interest rates and lower the equilibrium GDP.
Answer:
Option B, lower interest rates and increase the equilibrium GDP.
Explanation:
Option B is correct because the increase in the money supply will reduce the interest rate and increase the real GDP or output on the country because the rise in the money supply will results in more money in the hand of people. Therefore, more investment and production will be done in the economy. Thus, a rise in the production of output in the economy will result in the rise of GDP
what kind of harm can be done if a manager uses social network analysis to uncover the invisible structure in their organization sparknotes
Answer:
he poses a threat from competitors and or government to the company
Explanation:
By such actions. the manager will have exposed information that easily could be read on Sparknotes by an emerging or already existing competitor.
For example, information pertaining to top management remuneration or decision structure may be one such invisible organizational structure. Such information can reveal the weaknesses of the organization
Toys R Fun purchased $4,000 of merchandise and paid immediately. To record this transaction, Toys R Fun's accountant would debit the_____account and credit the______account.A. Cash.B. Merchandise Inventory.C. Accounts Payable.
Answer:
The answer is:
Debit the Merchandise Inventory account
Credit the cash account.
Explanation:
To start with, increase in assets and expenses go into debit side while decrease in assets and expenses go into credit side.
Merchandise inventory is an asset and cash too is an asset. Toys R Fun purchased inventory with cash, this means merchandise inventory increases while cash decreases.
According to the rule in the first paragraph, the recording is as follows:
Dr Merchandise Inventory $4,000
Cr cash. $4,000
Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a price of $10 discovers a way to price discriminate, it will be able to increase revenue from $20,000 to:
Answer:
$25,000 by charging consumers with more elastic demand only $5 and keeping the price for consumers with less elastic demand at $10
Explanation:
Price discrimination refers to the differentiation in the price of the product for every consumer that means the company charged different prices from the different customers
Also, in this it charges from the consumers having more elastic demand at less price. Here 2,000 units are purchased at $10 and the 1,000 units are purchased at $5 so the total quantity demanded is 3,000
The 25,000 units come from
= 2,000 ($10) + 1,000 ($5)
= 20,000 + 5,000
= 25,000
The senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates _____.
Complete Question:
The senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates?
Group of answer choices
A) downward communication
B) upward communication
C) horizontal communication
D) informal communication
Answer:
A) downward communication.
Explanation:
In this scenario, the senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates a downward communication.
A downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
When downward communication are effectively and properly used in an organization, it helps them to achieve their aims, goals and objectives successfully.
If Sheridan Company issues 7500 shares of $10 par value common stock for $375000, the account Paid-in Capital in Excess of Par Value will be credited for $75000. Common Stock will be credited for $75000. Cash will be debited for $300000. Paid-in Capital in Excess of Par Value will be credited for $375000.
Answer:
Common Stock will be credited for $75000
Explanation:
The journal entry to record the issuance of the common stock is shown below:
Cash Dr $375,000
To Common stock (7,500 shares × $10) $75,000
To Additional paid in excess of par value - common stock $300,000
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional capital as it increased the equity
The absolute value of the price elasticity of demand for ground beef has been estimated to be 0.5. If mad cow disease strikes the United States and a large percentage of the cattle are removed from the market, how will that affect total expenditures on hamburger, all other things equal
Answer:
total expenditure would increase
Explanation:
the demand for ground beef is inelastic.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.
As a result of the disease, the supply of ground beef would fall. this would lead to a hike in the price of ground beef. But since demand for ground beef is inelastic, the the fall in demand would be less than the rise in price, so total expenditures would rise.
Which is most likely a violation of the AICPA Code of Professional Conduct? A member firm buys computer time at wholesale prices from another CPA firm and sells it at retail prices to clients. A member firm’s name is imprinted on a tax booklet prepared by an outside author who is clearly identified. A member forms a partnership for the practice of public accounting with non-CPAs. A member begins a public accounting firm with the trade name "Pay Less Tax Service."
Answer:
A member begin a public accounting services with the trade name "Pay less tax "services"
Explanation:
The AICPA code of professional conduct is a set of mandatory rules describing the minimum level of conduct a member must maintain in order to earn public trust as this is of utmost priority to the professional body.
The code of conduct requires that no member should undergo any activity that undermines the services of the professional body . As a result , no member should charge a fee that that is believed to be be low and he should not mislead the public into believing such as a matter of integrity.
The business name "PAYLESS" appears to have violated this rule.
After listening to her boss's instructions regarding completion of the project, Angelica said, "Let me make sure I've got this straight. You need this project completed by the 15th of the month so we can go over it and make any changes before our meeting with the client on the 17th. Is that correct?" This is an example of _____.
Answer:
Paraphrasing
Explanation:
What Angelica did by making these statements and asking her boss these questions is called paraphrasing. She did it to gain clarity on what her boss already said or discussed.
When paraphrasing one would use different words to express the meaning of something for clarity on what is being discussed. It is simply a way of restating spoken words or written words using your own words.
Your job is to submit a risk diagnosis to the Centers for Medicare & Medicaid Services (CMS) for the purpose of payment. As part of this job, you use a process to verify the data is accurate. Your immediate supervisor tells you to ignore the Sponsor's process and to adjust or add risk diagnosis codes for certain individuals. What should you do?
Answer:
Report the incident to the compliance department (via compliance hotline or other mechanism)
Explanation:
Since in the question, it is mentioned that the you have to submit a diagnosis risk to CMS with respect to the payment also you need to check whether the data is correct or not
But at the same time you also ignored the process so here you need to report the situation to the compliance department so that the proper actions could be taken
In a risk diagnosis to the Centers for Medicare & Medicaid Services (CMS), report the incident to the compliance department (via compliance hotline or other method.
Since it is stated in the question that you must submit a diagnosis risk to CMS in order to receive reimbursement, you must also verify that the data is valid.
However, also neglected the process, therefore must report the problem to the compliance department so that appropriate action can be taken.
The Sponsor's methodology ensures that the data reported to CMS is correct. If disregard the process, its risk providing inaccurate information to CMS, which might have major consequences.
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Becky is offered the two deals below. Deal 1: She will get a quarter on the first day of the week. Each day thereafter for one week, she will receive double what she received on the previous day. Deal 2: She will get $4 each day for 1 week. Which statement is true in every aspect regarding these two deals
Answer:
She should go with deal 1 is greater than by $3.75.
Explanation:
The computation is shown below:
As in the first deal we have shown in a geometric sequence
We can represent Deal 1 as a geometric sequence:
[tex]g_n=0.25(2)^{n-1}[/tex]
where,
The 0.25 = first term,
2 = common ratio (as it doubles every day)
and n = the term number.
Now for determining the total money amount, first we have to calculate the sum
i.e
[tex]\Sigma_{n=1}^7(0.25)(2)^{n-1}[/tex]
After solving this,
we get 31.75.
Now for Deal 2
It could be shown as
4(7) = 28.
So as we can see that the deal 1 is greater than Deal 2
Suppose that sharply lower coffee prices lead to a decrease in the demand for tea. Tea price decreases, and the tea producers experience short-run economic losses. If the tea industry is a price-taker market, after sufficient time is allowed for the market to adjust fully to the decrease in the demand for tea, one would expect the tea industry's output to
Answer:
C)decline and economic losses to disappear.
Explanation:
here are the options to this question :
A)increase and economic losses to persist. B)decline and economic losses to persist. C)decline and economic losses to disappear. D)increase and economic losses to disappear
Coffee and tea are substitute goods. As a result, of the fall in price of coffee, the demand for tea would decrease. The decrease in price of tea would lead to an inward shift of the demand curve, assuming supply remains unchanged in the short run, equilibrium quantity would fall and equilibrium price would fall. this leads to firms in the tea industry experiencing economic losses.
In the long run, firms would exit the tea industry, output would reduce and economic losses would disappear
You've just won the lottery! Your winnings will be paid as a monthly annuity of $1,000 per month for 50 years. Assume an interest rate of 10 percent compounded monthly. (Do not round intermediate calculations. Round your final answer two decimal places.) What is the present value of your winnings if the first payment starts today
Answer:
$119,220.57
Explanation:
in order to calculate the present value of your lottery winnings, we can use the present value annuity factor:
present value = monthly payment x annuity factor (PV annuity factor, ¹⁰/₁₂%, 600 periods)
monthly payment = $1,000annuity factor = 119.22057present value = $1,000 x 119.22057 = $119,220.57
Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well.'' said Kim Clark, president of Martell Company. ''Our $14,800 overall manufacturing cost variance is only 2% of the $1.536.000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year.''The company produces and sells a single product. The standard cost card for the product follows:Standard Cost Card-per UnitDirect materials, 3.50 feet at $2.80 per foot $9.80Direct labor, 2.8 direct labor-hours at $12 per direct labor-hour 33.60Variable overhead, 2.8 direct labor-hours at $2.00 per direct labor-hour5.60Fixed overhead, 2.8 direct labor-hours at $6.00 per direct labor-hour 16.80Standard cost per unit $65.80The following additional information is available for the year just completeda. The company manufactured 20,000 units of product during the yearb. A total of 67,000 feet of material was purchased during the year at a cost of $3.00 per foot. All of this material was used to manufacture the 20,000 units. There were no beginning or ending inventories for the yearc. The company worked 58,000 direct labor-hours during the year at a direct labor cost of $11.80 per hour.d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow:Denominator activity level (direct labor-hours) 52,500Budgeted fixed overhead costs $315,000Actual variable overhead costs incurred $133,400Actual fixed overhead costs incurred $ 312,000Required1. Compute the materials price and quantity variances for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting F for favorable, U for unfavorable and None for no effect).2. Compute the labor rate and efficiency variances for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting F for favorable, U for unfavorable and None for no effect).3. For manufacturing overhead compute:a. The variable overhead rate and efficiency variances for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting F for favorable, U for unfavorable and None for no effect).b. The fixed overhead budget and volume variances for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting F for favorable, U for unfavorable and None for no effect).
Answer and Explanation:
1. The computation of materials price and quantity variances for the year is shown below:-
Material price variance = Actual quantity × (Actual rate - Standard rate)
= 67,000 × ($3.00 - $2.80)
= 67,000 × $1.80
= $120,600 unfavorable
Material quantity variance = (Actual quantity - Standard quantity) × Standard price
= 67,000 - (20,000 × 3.50)) × $2.80
= (67,000 - 70,000) × $2.80
= $8,400 favorable
2. The computation of the labor rate and efficiency variances for the year is shown below:
Labor rate variance is
= (Actual rate - standard rate) × Actual hours
= ($11.80 - $12) × 58,000 direct labor hours
= $11,600 favorable
labor efficiency variance is
= (Actual hours - standard hours) × standard rate
= (58,000 direct labor hours - 20,000 units × 2.8 direct labor hours) × $12
= $24,000 unfavorable
3. a. The computation of variable overhead rate and efficiency variances for the year is shown below:-
variable overhead rate = Actual hours × (Actual rate - Standard rate)
= 58,000 × ($133,400 ÷ 58,000 - $2.00)
= $17,400 Unfavorable
Variable overhead efficiency variance = (Actual hours - Standard hours) × Standard rate
= (58,000 - (20,000 × $2.8)) × $2.00
= (58,000 - 56,000) × $2.00
= $4,000 Unfavorable
3. b. The computation of fixed overhead budget and volume variances for the year is shown below:-
fixed overhead budget variance = Actual fixed overhead - Budgeted fixed overhead
= $312,000 - $315,000
= $3,000 Favorable
Volume variance = (Standard hours allowed - Denominator activity level) × Fixed overhead rate per hour
= ((20,000 × $2.8) - 52,500) × $6.00
= $56,000 - 52,500) × $6.00
= $3,500 × $6.00
= $21,000
