Otis Powell Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: Materials: Line Item Description Standard Actual Standard: 300 pounds at $2.50 per pound $750 Actual: 250 pounds at $3.00 per pound Direct labor: Line Item Description Standard: 350 hours at $10.00 per hour Actual: 350 hours at $12.00 per hour $750 Standard Actual 4,000 b. $810 U c. $400 F d. $500 F 4,000 What is the labor efficiency variance for Otis Powell Corporation? a. $602 U

Q: What are Cush flow diagrams?

A: Cash Flow:   A cash flow refers to the movement of cash to or from the business. If the cash moves…

Q: Explain the characteristics

A:

Q: What is the purpose of EDI?

A: Transparency in electronic data exchange: Expanding EDI enables suppliers to get access to a buyer's…

Q: Describe the differences between a formula and a function?

A: A formula is an equation or expression that, when entered into a spreadsheet or other application,…

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Explain Destination principle in relation to VAT.

A: The destination principle is a principle in Value Added Tax (VAT) that determines the taxation of…

Q: What is a NIC?

A: NIC:  NIC stands for network interface card. NIC is an electronic device that provides circuit to…

Q: What is the purpose of EDI?

A: Electronic data interchange: The expansion of EDI is Electronic Data Interchange and it allows the…

Q: What is internalization?

A: Internalization: It happens when an individual directs an exchange itself, as opposed to sending it…

Q: When do you prepare the Adjusted Trial Balance? After the Adjusted trial balance has been prepared,…

A: The trial balance that contains adjustments is an internal record of the firm that contains all the…

Q: Define correlation

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: What are the levels of data hierarchy?

A: Accounting Information System:   This refers to a system that is adopted by an organization to…

Q: What is an REA diagram?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: what does COGS means

A: Income statement: It implies to a financial statement that shows all the expenses incurred in a…

Q: What is the meaning of incoterms

A: International chamber of commerce is the supervisor of international trading, and try to provide…

Q: How is RI calculated?

A:

Q: at output

A: Given: To explain the Vat output as,

Q: Define the term realization principle.

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Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: Top Wood is a small manufacturing company currently making a single type of chair. The managing…

A: Fixed manufacturing overhead costs = Total manufacturing verhead costs - variable manufacturing…

Q: How is materiality concept applied?

A: Accounting principles:

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: Define Correlation as a concept

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Q: what is Reference control ?

A: I assumed as a question, as what is meant by the reference  to cost control?

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.