For variable overhead, actual cost times actual quantity (or actual cost) equals $16,500; standard cost times actual quantity (or "budgeted" cost) equals $16,800 and standard cost times standard quantity [allowed] (or standard cost) equals $16,200. The variable overhead cost (or spending) variance would be: $300 unfavorable $600 favorable O $300 favorable $600 unfavorable
For variable overhead, actual cost times actual quantity (or actual cost) equals $16,500; standard cost times actual quantity (or "budgeted" cost) equals $16,800 and standard cost times standard quantity [allowed] (or standard cost) equals $16,200. The variable overhead cost (or spending) variance would be: $300 unfavorable $600 favorable O $300 favorable $600 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How would you solve this equation ?
Transcribed Image Text:During 2020, LAMP Enterprises bought machinery costing $90,000. LAMP
Company expected to receive annual inflows of $24,000 for the next five years with
no salvage value at the end of five years. LAMP had a minimum rate of return (or
discount rate) of 8%. For blank one, indicate the payback period in years. For blank
two, indicate to the nearest percent the internal rate of return (it is CONCEIVABLE
that I might accept two rates on manual regrade). For blank three, based on your
internal rate of return calculation, should be project (if capital rationing does not
apply) be accepted?
Blank # 1
Blank # 2
Blank # 3
![For variable overhead, actual cost times actual quantity (or actual cost) equals
$16,500; standard cost times actual quantity (or "budgeted" cost) equals $16,800
and standard cost times standard quantity [allowed] (or standard cost) equals
$16,200. The variable overhead cost (or spending) variance would be:
O $300 unfavorable
O $600 favorable
O $300 favorable
O $600 unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3101930c-e83c-4780-b7ea-1c80937b66a6%2F077459e9-fad7-45ea-9bc5-98f5dee6f35f%2Fxqdpq4q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For variable overhead, actual cost times actual quantity (or actual cost) equals
$16,500; standard cost times actual quantity (or "budgeted" cost) equals $16,800
and standard cost times standard quantity [allowed] (or standard cost) equals
$16,200. The variable overhead cost (or spending) variance would be:
O $300 unfavorable
O $600 favorable
O $300 favorable
O $600 unfavorable
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