Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.55 and sold for $65.05. A finished desk can be sold for $74.00.

image text in transcribed
image text in transcribed
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $34.55 and sold for $65.05. A finished desk can be sold for $74.00. The additional processing cost to complete the finished desk is $6.15. Prepare a differential analysis. Round your answers to two decimal places. Differential Analysis Sell Unfinished (Alternative 1) or Process Further into Finished (Alternative 2) Desks Sell Unfinished Process Further into Differential Desks Finished Desks Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues per desk 65.05 74 Costs per desk Profit (loss) per desk $ Should the company sell unfinished desks or process further and sell finished desks? Oficina Bonita Company should Ruby Company produces a chair for which the standard specifies 6 yards of material per unit. The standard price of one yard of material is $12.70. During the month, 7,200 chairs were manufactured, using 42,800 yards at a cost of $13.33 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance TA c. Total direct materials cost variance $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance services an integrated approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

16th edition

978-0134075754, 134075757, 134065824, 978-0134065823

More Books

Students also viewed these Accounting questions

Question

1. Give the order of the following code segment as a function of n

Answered: 1 week ago

Question

Why is it important to have a code of ethics?

Answered: 1 week ago