Question

Elixer Corporation planned to produce 10,000 units. Processing required 15,000 machine hours at a cost of $14,000 + $10.00 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _____ is the static-budget variance for processing.

Group of answer choices

$39,000 unfavorable

$58,000 favorable

$39,000 favorable

$58,000 unfavorable

The following data for the Alpha Beta Company pertain to the produc­tion of 3,000 clay pigeons during July:

Standard variable-overhead cost was $5.00 per pound of clay.

The actual variable-overhead cost was $11,340.

Standard variable-overhead cost allowed for units produced was $12,000.

Variable-overhead efficiency variance was $340 unfavorable.

What is their variable-overhead rate variance?

Group of answer choices

$560 unfavorable

$800 favorable

$1,000 favorable

$800 unfavorable

You can receive $10,000 today or $3,000 per year for the next five years. If the required rate of return is 10%, what option should be selected? (The present value of an ordinary annuity at 10% for five periods is 3.7908. The present value of one at 10% for five periods is 0.6209.)

Group of answer choices

Neither option is desirable.

Receive $3,000 per year for the next five years.

The results are the same for both options.

Receive $10,000 today

Revenue is $300 and invested capital is $240. Expenses are currently 60% of sales. The current ROI =

Group of answer choices

None of these answers is correct

50 %

100 %

80 %

Answer 1

Answer is given below

1 Answer is $58,000 unfavourable Fixed $14,000 Variable $150,000 Budgeted) Actual Variance Total $164,000 $222,000 $58,000 Unfavourable 2 variable overhead efficiency variance Standard allowed for actual Variable overhead efficiency variance Actual Variable overhead at standard rate Standard variable overhead rate Actual pounds $12,000 $340 Adverse $12,340 $5.00 2,468 Actual variable overhead rate Actual rate $11,340 $4.59 ($11,340/2,468) $1,000 Favourable Variable overhead rate variance (Standard rate - Actual rate) * Actual pounds 3 Answer is Receive $3,000 per year for the next five years. Option A Today $10,000.00 Option B Receivable in 5 instalments $11,372.40 ($3,000*3.7907) Option B is better 4 Answer is 50% Revenue Expenses Income $300 $180 60% of sales $120 $120 Income Invested capital 50% $240)