Business, 21.04.2020 19:26 noslengerman

Exercise 10-30 Cost Variance Investigation (LO 10-4)The director of cost management for Odessa Company uses a statistical control chart to help management determine when to investigate variances. The critical value is 1 standard deviation. The company incurred the following direct-labor efficiency variances during the first six months of the current year. January $ 500 F February 1,600 U March 1,400 U April 1,800 U May 2,100 U June 2,400 U The standard direct-labor cost during each of these months was $38,000. The controller has estimated that the firm’s monthly direct-labor variances have a standard deviation of $1,900.Required:a. Determine the cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost. b. Based on the cutoff value, which of the month(s) will have their direct-labor efficiency variance investigated?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 05:00

Identify an organization with the low-total-cost value proposition and suggest at least two possible measures within each of the four balanced scorecard perspectives.

Answers: 3

Answer

Business, 22.06.2019 21:00

Dozier company produced and sold 1,000 units during its first month of operations. it reported the following costs and expenses for the month: direct materials $ 69,000 direct labor $ 35,000 variable manufacturing overhead $ 15,000 fixed manufacturing overhead 28,000 total manufacturing overhead $ 43,000 variable selling expense $ 12,000 fixed selling expense 18,000 total selling expense $ 30,000 variable administrative expense $ 4,000 fixed administrative expense 25,000 total administrative expense $ 29,000 required: 1. with respect to cost classifications for preparing financial statements: a. what is the total product cost

Answers: 2

Answer

Business, 22.06.2019 21:30

The adjusted trial balance for china tea company at december 31, 2018, is presented below:

Answers: 1

Answer

Business, 23.06.2019 00:00

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.

Answers: 1

Answer

You know the right answer?

Exercise 10-30 Cost Variance Investigation (LO 10-4)The director of cost management for Odessa Compa...

Questions