osts assigned: straight materials standard expense (405,000 devices $2.00/unit) 810,000 yes, really costs: straight Materials prices incurred (403,750 devices $2.20/unit) $888,250 multiple Choicea. $2,500 Favorable. B. $80,750 Unfavorable. C. $78,250 Unfavorable. D. $80,750 Favorable. E. $78,250 Favorable


C. $78,250 Unfavorable.

You are watching: A company provided the following direct materials cost information. compute the cost variance.


We know,

Material expense variance = (Standard amount × conventional price) - (Actual quantity × really price)


Standard amount = 405,000 units

Standard price = $2.00 unit

Actual quantity = 403,750 units

Actual price = $2.20 unit

Putting the values right into the formula, we can get

Material cost variance = (Standard amount × traditional price) - (Actual amount × yes, really price)

Material price variance = (405,000 × $2.00) - (403,750 × $2.20)

Material cost variance = $810,000 - $888,250

Material expense variance = -78,250

Material cost variance = 78,250 (Unfavorable)

Therefore, C is the princetoneclub.org.

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Better Corp. (BC) started operations on January 1, Year 1. During Year 1, BC skilled the following bookkeeping events: 1. Acqui
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Better Corp. (BC)

a. Accounting Equation

Assets = legal responsibility + Equity

1. Cash $7,000 common stock $7,000

2. Cash $12,000 financial institution loan paprincetoneclub.orgble $12,000

3. Cash $47,000 company Revenue $47,000

4. Cash ($30,000) Op. Expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

Assets $28,000 = legal responsibility $12,000 + same $16,000

b. December 31, Year 1 Balances:

Total heritage = $28,000

Total legal responsibility = $12,000

Stockholders\" equity = $16,000

Balance Sheet as of December 31, Year 1


Cash $8,000

Land $20,000

Total heritage $28,000


Bank loan $12,000


Common share $7,000

R/Earnings 9,000

Total same $16,000

Liabilities and

same $28,000

c. January 1, Year 2 Balances:

Total assets = $28,000

Total liabilities = $12,000

Total equity = $16,000

d. The Land will certainly be displayed on the December 31, Year balance sheet at $20,000. The factor is the this is the salvation cost and also the soil is not held for commerce (no details provided).


a) Data and evaluation based on the accounting Equation:

1. Cash $7,000 typical stock $7,000

2. Cash $12,000 financial institution loan paprincetoneclub.orgble $12,000

3. Cash $47,000 company Revenue $47,000

4. Cash ($30,000) Operating expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)


production of personal customized products


Mass customization have the right to be defined as when a company produces and delivers sector goods and services that room suited to meet the demands of separation, personal, instance customers

It combines the advantage of short cost associated with mass production with the customization the goods.

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An instance of a product that is massive customized is the mobile phone. A mobile phone call is mass produced however due to its software, users are able to change or customize your phone to suit their needs

Types of mass customization

Collaborative customization: In this form of massive customization, customers and also the company work together to create a good or service that meets the distinct needs the the consumer. Adaptive customization: the an excellent or service created deserve to be additional customized by the consumer to fit their needs. Transparent customization: unique commodities are made for each consumer . Cosmetics customization: different varieties of standardized assets are created various teams of customers.

Advantages of fixed customization

Customer satisfaction increasesGoods are produced at lower costs

Disadvantages of mass customization

It would certainly be an overwhelming for the firm to develop up share ahead that time because of the unique needs the the customersthere would be an raised wait time from the time the stimulate is make till as soon as it is delivered


It is a system in i beg your pardon the inventory of an item is save in two different locations.


Two-bin inventory regulate is a mechanism in i m sorry it steps the items when they are offered for production and also then could be replenished. Right here the items that need to be in an initial bin must be depleted and also there is one order because that refill or replacing. And, climate the second bin should have adequate items it rotates the stimulate of very first bin arrived

So together per the given situation, the over statement need to be taken into consideration




Ending work-related in progression = start Work in progress + Units began - devices completed and also transferred

= $22,000 + $90,000 - $97,000

= $15,000

Equivalent systems = systems completed and transferred + ending work in progress

= $97,000 + $15,000

= $112,000

Total cost = Material expense (Beginning) + Material cost during the month

= $11,000 + $46,100

= $57,100

Cost per tantamount unit = $57,100 ÷ $112,000

= $0.51

Materials cost of the occupational in process inventory in ~ March 31 = finishing work in development × cost per indistinguishable unit

= $15,000 × $0.51

= $7,650


Fabri coporation, group is considering removed a room that has actually an annual contribution margin the $35,000 and $70,000 in yearly fixed costs. That the resolved costs, $25,000 cannot be avoided.

The yearly financial advantage for Fabri copy, group of remove this department would certainly be:

A. $10,000


Annual donation margin = $35,000

Annual departmental fixed expenses = $70,000

Annual inescapable fixed costs = $25,000

Therefore, the avoidable fixed price (70,000 -25,000) = 45,000

Loss incurred by not eliminating the department = ($10,000)

b) Fabri coporation, group will avoid incurring the ns amounting come $10,000 by eliminating the department. This suggests that the will have some financial advantage by stopping the erosion that its benefit margin from various other departments.