a.
Introduction: The material price variance is favorable when there is a cost-saving that is the actual prices are less than the standard price. The favorable variance helps in increasing the profitability of the entity. The material variances include direct material price variance and direct material quantity variance.
The direct material price variance, direct material quantity variance, direct labor price variance, and direct labor quantity variance.
b
Introduction: The applied
To calculate: The overhead variance.
c
Introduction: The income statement consists of revenues, cost of goods sold based on
To prepare: The income statement.
d
Introduction: The variance indicates the targeted cots are different from the actual costs. The variances in costs are used to determine the difference and analyze the reason for differences. The variance is used in controlling costs.
To explain: The explanation for unfavorable variance.
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ACCOUTING PRIN SET LL INCLUSIVE
- Tata Company uses a predetermined overhead rate of $45 per machine hour. Estimated machine hours at the beginning of the year were 18,000 and actual machine hours at the end of the year were 18,500. Estimated total manufacturing overhead costs at the beginning of the year are $810,000 and actual total manufacturing overhead costs at the end of the year are $825,000. What is the amount of manufacturing overhead that would have been applied to all jobs during the year? answerarrow_forwardSimons gross profit is?arrow_forwardDetermine the profit marginarrow_forward
- Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning