Question
I am doing a project and I try to have all the necessary information for this question here, but it is possible that to answer
I am doing a project and I try to have all the necessary information for this question here, but it is possible that to answer this question well you need other data that is not here, and that data will be in the other questions that I ask, (since it is only can answer one question at a time on Chegg). I've only used Chegg for this project, so you don't have to look a lot of questions, it's only 5 questions. Please, if you can do this, I would really appreciate it. Thank you The break-even quantity is 9,200 units The quantity to make a profit of $25,000 is 11,700 units The quantity to make a profit of $40,000 is 13,200 units. Also, to find standard costs, you need to MULTIPLY two amounts together.
- Compute the following variances:
- Materials Price Variance (AQ X AP) vs (AQ X SP)
- Materials Quantity Variance. (AQ X SP) vs. (SQ X SP)
- Labor Rate Variance. (AH X AR) vs (AH X SR)
- Labor Quantity (Efficiency) Variance (AH X SR) vs. (SH X SR)
- Total Overhead Variance (Actual MOH vs Applied MOH).
*Hint: The net of each price/quantity variance for DM and DL should equal your spending variance for each item.
- Looking at these variances as a whole, what are some possible explanations as to what caused these variances? (Your answer must include possible explanations for each of the labor/materials variances). What are some things management can do to improve these variances?
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