Answer:
The Porter Beverage FActory
Differential income from the lease alternative is:
= $27,200.
Explanation:
a) Data and Calculations:
Alternative Alternative
1 Sale 2 Lease
Income:
Sales proceeds $614,000
Lease receipts $810,500
5% commission (30,700)
Property taxes each year (168,000)
Annual insurance (32,000)
Income (loss) $583,300 $610,500
Differential income = $27,200 ($610,500 - $583,300)
b) The above differential income does not take in account the time value of money. In addition, it does not consider future streams of income that can be received when the building is either leased out to another entity or sold.
The _____ is the person who provides support or obtains funding.
stakeholder
project manager
customer
sponsor
Answer:
sponsor
Explanation:
In 2021, it was discovered that a company had debited expense for the full cost of an asset purchased on January 1, 2018. The cost was $42 million with no expected residual value. Its useful life was 7 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries includes:
Answer and Explanation:
The journal entry is shown below:
Asset $42 million
To Accumulated Depreciation $18 million ($42 ÷ 7 years × 3 years)
To Retained earning $24 million ($42 ÷ 7 years × 4 years)
(Being the correct entry is recorded)
The asset is debited as it increased the asset and accumulated depreciation & retained earning is credited as it decreased the assets but increased the stockholder equity
A project has the following cash flows: Year Cash Flows 0 -1,200 1 600 2 600 3 600 4 300 5 200 6 200 What is the Internal Rate of Return (IRR) of this project?
The internal rate of return of the project given its cash flows is 34.26%.
What is the internal rate of return?Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
The internal rate of return can be determined using a financial calculator.
Cash flow in year 0 = -1200
Cash flow in year 1 - 3 = 600
Cash flow in year 4 = 300
Cash flow in year 5 - 6= 200
Internal rate of return = 34.26%
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Explain the effect on firms and labor market
Oriole Company had the following transactions during 2022: 1. Issued $310000 of par value common stock for cash. 2. Recorded and paid wages expense of $148800. 3. Acquired land by issuing common stock of par value $124000. 4. Declared and paid a cash dividend of $24800. 5. Sold a long-term investment (cost $7440) for cash of $7440. 6. Recorded cash sales of $992000. 7. Bought inventory for cash of $396800. 8. Acquired an investment in Zynga stock for cash of $52080. 9. Converted bonds payable to common stock in the amount of $1240000. 10. Repaid a 6-year note payable in the amount of $545600. What is the net cash provided by financing activities
Answer and Explanation:
The computation of the net cash provided by financing activities is shown below;
Cash flows from financing activities
Issue of common stock $310,000
Less : Cash dividends ($24,800)
Repaid notes Payable ($545,600)
Net cash flow used by financing activities ($260,400)
The positive amount represent the inflow of cash and the negative amount represent the outflow of cash
Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) $ 100 Variable cost per unit $ 65 Fixed costs per unit (based on capacity) $ 10 Capacity in units 30,000 Division A has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. The other division can either agree to a transfer price with Division A or purchase a comparable product on the outside market for $100. If Division A is currently selling 28,000 units on the outside market, what is the range of acceptable transfer prices between the two divisions
Answer:
The range of acceptable transfer prices between the two divisions is:
= $83.20 to $100.
Explanation:
a) Data and Calculations:
Selling price per unit (on the outside market) $ 100
Variable cost per unit $ 65
Fixed costs per unit (based on capacity) $ 10
Production capacity in units 30,000
Current sales capacity = 28,000
Units required by another division = 5,000
New sales capacity = 33,000 (28,000 + 5,000)
Total fixed costs per current capacity = $300,000 ($10 * 30,000)
Total production costs = $2,250,000 ($65 * 30,000 + $300,000)
Product cost per unit with old capacity = $75 ($2,,250,000/30,000)
Additional production capacity required for the internal order = 3,000 (33,000 - 30,000)
New total fixed costs for required capacity = $600,000 ($300,000 * 2)
Total production costs = $2,745,000 ($65 * 33,000 + $600,000)
Product cost per unit with new capacity = $83.20 ($2,745,000/33,000)
alser Corporation manufactures and sells a number of products, including a product called JYMP. Results for last year for the manufacture and sale of JYMPs are as follows: Sales $ 960,000 Less expenses: Variable production costs $ 464,000 Sales commissions 144,000 Salary of product manager 100,000 Fixed product advertising 160,000 Fixed manufacturing overhead 132,000 1,000,000 Net operating loss $ (40,000) Balser is trying to decide whether to discontinue the manufacture and sale of JYMPs. All expenses other than fixed manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. Assume that dropping Product JYMP will have no effect on other products. The annual financial advantage (disadvantage) for the company of eliminating this product should be:
Answer:
($2,000)
Explanation:
Missing word "Assume that dropping Product JYMP would result in a $90,000 increase in the contribution margin of other products"
Particulars Amount
Loss in contribution margin of JYMP ($352,000)
($960000-$464000-$144000)
Avoidable fixed costs $260,000 ($160000+$100000)
Additional contribution margin $90,000
Financial (disadvantage) ($2,000)
So, the annual financial (disadvantage) for the company of eliminating this product will be ($2,000)
During the current year, Esty Company replaced the roof on its manufacturing facility with a better roof that also extended the useful life of the facility. The cost of the new roof was $130,000. The old roof cost $92,000 and had accumulated depreciation of $60,000. The company received nothing for the old roof. Which of the following will be included in the journal entry to record the replacement of the roof?
a. Debit - Loss on Disposal $32,000
b. Credit - Building $32,000
c. Debit - Repair Expense $130,000
d. Debit - Building $38,000
Answer:
A
Explanation:
The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:
Rhinebeck Company
Product-Line Income Statement
For the Month Ended October 31
Hats Gloves Mufflers
Sales $71,000 $105,700 $45,000
Cost of goods sold (32,600) (42,300) (27,000)
Gross profit $38,400 $63,400 $18,000
Selling and administrative27400 (42,800) (25000)
expenses
Operating income (loss) $11,000 (20,600) $(7,000) Fixed costs are 20% of the cost of goods sold and 30% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued.
Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2).
Answer:
Mufflers should be continued (Alternative 1)
Explanation:
Preparation of a differential analysis dated to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2).
DIFFERENTIAL ANALYSIS
Continued (Alternative 1); Discontinued (Alternative 2); Differential effect on income Alternative 2)
October 31
Revenue $45,000 $0 ($45,000)
Costs:
Variable cost of goods sold ($21,600) $0 $21,600
[$27,000*(1-20%)]
Variable selling and administrative expense
($17,500) $0 $17,500
[$25,000*(1-30%)]
Fixed income ($12,900) ($12,900) $0
[($27,000*20%)+($25,000*30%)]
Income(Loss) ($7,000) ($12,900) ($5,900)
Based on the above Differential Analysis MUFFLERS SHOULD BE CONTINUED reason been that the income will decrease by $5,900 if Mufflers discontinued.
Match each Zara System feature with a Toyota Production System feature. Each option (A through E) should be used exactly once, i.e., you should find a one-to-one match. - Less than 2 weeks from drawing board to store - All storefronts are designed centrally - Direct shipments from factory to store - Small collections to minimize markdowns - New designs based on sales patterns - Zara regulars look for black plastic hangars A. Pull system B. Standardized work C. Visual Management D. Inventory > need is waste E. Pathway Rule F. Just-In-Time
Answer:
Matching Zara System Features with Toyota Production System Features
Zara System feature Toyota Production
System feature
- Less than 2 weeks from drawing
board to store Pull system
- All storefronts are designed centrally Pathway Rule
- Direct shipments from factory to store Just-In-Time
- Small collections to minimize markdowns Inventory > need is waste
- New designs based on sales patterns Standardized work
- Zara regulars look for black plastic hangers Visual Management
Explanation:
A. Pull system: limited work in process; orders are placed on demand.
B. Standardized work: sequential documentation of work processes.
C. Visual Management: involves visual communication of work expectations, performance standards, or variance warnings.
D. Inventory > need is waste: This specifies inventory optimization.
E. Pathway Rule: This rule dictates a simple and direct pathway for every product or service without encouraging decision forks.
F. Just-In-Time: matching production schedules or store demands with supplies in order to reduce inventory costs, reduce wastes, and increase supply-chain efficiency.
A marketing plan
describes the economic structure of a specific country
focuses on customers' needs and target market
identifies the methods a company will use to produce goods
provides an analysis of a business's strengths and weaknesses
A marketing strategy concentrates on the target market and clients' needs. As a result, choice (B) is appropriate.
What Is a Marketing Plan?An operational document known as a marketing plan describes the advertising approach that will be used by a firm to create leads and connect with its target market. A marketing strategy outlines the public relations (PR) and outreach initiatives that will be carried out over time, along with how the business will evaluate their success.
A business plan, which outlines all of the key components of a company, including its objectives, core principles, mission statement, budget, and tactics, includes a marketing strategy.
Hence, option (B) is accurate.
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On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the equipment to operate for 10,000 hours. The equipment operated for 2,200 and 3,000 hours in 2021 and 2022, respectively. Required: a. Calculate depreciation expense for 2021 and 2022 using straight-line method. b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method. c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.
Answer:
$7000
$7000
b. 15,000
7500
6160
8400
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(30,000 -- 20,000) / 4 = 7,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
2/4 x 30,000 = $15,000
2022 = 2/4 x (30,000 - 15,000) = 7500
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
discuss the role of entrepreneurship in the south african economy
Answer:
here you go
Explanation:
Key Takeaways. Entrepreneurship is important, as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.
Answer:
it is very good but also very long
there's like 5 seasons and every ep is nearly an hour long
5) In class we discussed different shocks; for each of the following, describe how monetary policymakers would respond (if at all) to stabilize economic activity. a. A reduction in autonomous consumption. related to consumer spending. b. An increase in government expenditures. c. An appreciation of the dollar relative to other currencies.
Answer:
a) monetary policy will be eased
b) Monetary policy will be tightened
c) Monetary policy will be eased
Explanation:
A) A reduction in autonomous consumption
A reduction in autonomous consumption will cause the monetary policy makers to apply an autonomous easing of monetary policy and this is to help balance the economy because of the reduction seen in aggregate demand
b) An increase in government expenditures
An increase in government expenditures will result in an increase in demand hence monetary policy will be made tighter in order to balance the economy activities
c) An appreciation of the dollar
when the dollar appreciates relative to other currencies the effect is that there will be a decrease in exports and increase in imports, hence the monetary policymakers will apply an autonomous easing of monetary policy to help balance economic activities
Jack and Jill have gone out for cycling and they have come to a place where the road is obstructed by a fallen tree. They can move the tree if both of them try. If none of them tries, they have to turn back and reach home very late. However, if one of them tries while the other does not help, the one who tries will have a muscle sprain and will not be able to move the tree. The matrix below shows the utility each of them derives in each situation. The first number listed in each cell is the payoff to the row player and the second number listed is the payoff to the column player.
Jill
Tries Does not try
Jill Tries 5 5
5 2
Does not try -2 -2
-5 -2
1. Refer to the scenario above. Jack will derive ________ units of utility if both of them try to move the tree.
A. 5
B. −5
C. −2
D. 10
2. Refer to the scenario above. Jack will derive ________ units of utility if Jill tries to move the tree while he does not try at all.
A. 5
B. −5
C. −2
D. 10
3. Refer to the scenario above. Jack and Jill will derive maximum utility if:
A. Neither of them tries to move the tree.
B. Jack tries to move the tree, while Jill does not.
C. Jill tries to move the tree, while Jack does not.
D. Both of them try to move the tree.
4. Refer to the scenario above. Which of the following is true in this case?
A. Jill is better off by not trying if Jack tries to move the tree.
B. Jack is better off by trying to move the tree if Jill does not try at all.
C. Jack is better off by trying to move the tree if Jill tries to move the tree.
D. Jill is better off by trying to move the tree if Jack does not try at all.
5. Refer to the scenario above. This game ________.
A. does not have a dominant strategy equilibrium
B. does not have a Nash equilibrium
C. has a unique Nash equilibrium
D. has a unique dominant strategy equilibrium
Answer: See explanation
Explanation:
1. Refer to the scenario above. Jack will derive (5) units of utility if both of them try to move the tree.
The answer to the question will be the first payoff in the matrix and this is 5.
2. Refer to the scenario above. Jack will derive (-2) units of utility if Jill tries to move the tree while he does not try at all.
This will be gotten from the second cell of the matrix. The answer is-2.
3. Refer to the scenario above. Jack and Jill will derive maximum utility if (both of them try to move the tree).
Here, the payoff matrix has a maximum value of 5 and at this point, both of them can get maximum utility. Therefore, the correct option is D.
4. The true statement is that "Jack is better off by trying to move the tree if Jill tries to move the tree". Therefore, the correct option is C.
5. The scenario above indicates that the game does not have a dominant strategy equilibrium as it is dependent on the strategy of other players. Therefore, the correct option is A.
At the end of the current year (before adjusting entries), Autumn Corporation had a balance of $76,000 in Accounts Receivable and a credit balance of $11,000 in Allowance for Uncollectible Accounts. Service revenue (all on credit) for the year totaled $490,000.
Requirement 1:
Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expense if Vacay Corporation estimates its uncollectible-account expense using a rate of 5% of credit sales.
What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
Requirement 2:
Now assume that Vacay Corporation uses the aging-of-receivables method. Vacay Corporation estimates that its Allowance for Uncollectible Accounts should have a credit balance of $27,000.
Calculate the amount of its Uncollectible-Account Expense.
What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
Answer:
?????????
Explanation:
Which of the following would NOT fall
under the work responsibilities of a
Civil Engineer?
A. Being up to date on the newest machinery.
B. Changing the landscape of a main city street.
C. Working in an office behind the scenes of a project.
D. Problem solving where a new road needs to be
placed.
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,400 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
Answer:
Period cost ⇒ $240Product cost ⇒ $560Explanation:
First find out the amount of money that pertains to the first year:
= 2,400 / 3 years
= $800
Out of the $2,400, $800 is the payment for the year.
Product cost is the portion that would go towards manufacturing operations:
= 70% * 800
= $560
Period cost is the cost that applies to the selling and administrative activities:
= 30% * 800
= $240
Bridgeport Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $87,120. Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules.
Answer:Please see answers in explanation column
Explanation:
Cost per service year = obligation From benefit / Total years of service
Total years of service= 3+4+5+6+6=24
Cost per service year =$87,120/24 =$3,630
Year Jim Paul Nancy Dave Kathy Total × Cost Amortization
2020 1 1 1 1 1 5 × $3,630 $18, 150
2021 1 1 1 1 1 5 × $3,630$ $18, 150
2022 1 1 1 1 1 5 × $3,630 $18, 150
2023 1 1 1 1 4 × $3,630 $14, 520
2024 1 1 1 3 × $3,630 $10,890
2025 1 1 2 × $3,630 $7,260
Total $87,120.
Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It assumes competitors know better than the company's own planners. B) It results in high communication expenditures irrespective of what the company can afford. C) It is overly focused on the relationship among communication cost, selling price, and profit per unit. D) It treats sales as what determines communication, rather than as the result of effective communication. E) It is too focused on long-range planning.
Answer:
d
Explanation:
The different methods of determining marketing budget includes :
Percentage of Sales method. - it is usually used by small businesses. it is when a percentage of sales is used to determine the overall budget of marketing communications.
Objective and Task method ; this involves a firm determining it objectives and then estimating the cost of reaching these objectives
Market Share method. - uses its market share to determine its budget
Unit Sales method. - the cost of marketing for one item is determined and then multiplied by the desired sales level
Uri would like to change the font color in a group of cells. In which part of the Excel window should he look for font color
controls?
the Quick Access toolbar
the ribbon
the worksheet
the formula bar
Answer:
B the Ribbon
Explanation:
The Ribbon is where you can change the font color
Sean just graduated from college and is now in the market for a new car. He has saved up to $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599 and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes a dealership check for $4,000 and takes out a loan for the remainder of the purchase price.
Identify what role money plays in each of the following parts of the story. (Medium of exchange, unit of account, or store of value)
A. Sean writes a check for $4,000.
B. Sean can easily determine that the price of the Super is more than the price of the Duper.
C. Sean has saved $4,000 in his checking account.
Answer:
Medium of exchange
unit of account
store of value)
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you buy a car with a check
2. Unit of account : money can be used to value goods and services. SEAN was able to determine which is more valuable between super and duper using the price.
3. Store of value : money can retain its value over the long term, this it can be used as a store of value.
Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate:_________.
Answer:
and net exports will both fall.
Explanation:
The real interest rate can be regarded as rate of interest that is received by an investor or lender after inflation has been allowed, we can describe this with Fisher equation, that real interest rate is regarded as approximately difference of nominal interest rate and the inflation rate. Net exports can be regarded as measure of total trade of goods and services of a particular country. It can be regarded as balance of trade, and this one that remains after deduction of import value of a country from the export value of the country which is been calculated for a particular period.In instance, whereby a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate and net exports will both fall.
Suppose the corporate tax rate is 30%. Consider a firm that earns $3,500 in earnings before interest and taxes each year with no risk. The firm's capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capital. The risk-free interest rate is 5%. a) Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity
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The healthy worker effect refers to the observation that: A.healthy persons are more likely to gain employment than unhealthy persons. B.All are correct. C.unemployed persons tend to have lower mortality than employed persons. D.exercise on the job causes workers to become healthy and gain years of life.
Answer:
A. healthy persons are more likely to gain employment than unhealthy persons.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Natural Rate of Unemployment (NU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Cyclical unemployment rate (CU).
According to Richard Monson who is an occupational epidemiologist, healthy worker effect is an observation that the number of people that are eligibly employed most likely to have a lower mortality experience when compared with the general population. Thus, employees usually have lower overall death rate as opposed to the general population because persons with terminal (severe) illness, mental imbalance and chronical disabilities are normally exempted from employment.
This ultimately implies that, the healthy worker effect refers to the observation that healthy persons are more likely to gain employment than unhealthy persons.
Hartley Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the defense industry. You have been asked by the owner, Janet Hartley, to reduce inventory by introducing a kanban system. After several hours of analysis, you develop the following data for scanner connectors used in one work cell. How many kanbans do you need for this connector?
Daily demand 600 connectors
Lead time 2 days
Safety stock 50 days
Kanban size 500 connectors
Answer:
62.4kanbans
Explanation:
Calculation to determine How many kanbans do you need for this connector
First step is to calculate the Demand During Lead Time
Using this formula
Demand During Lead Time= 2 days x Daily Demand
Let plug in the formula
Demand During Lead Time=2*600
Demand During Lead Time=1,200
Second step is to calculate the Safety Stock
Using this formula
Safety Stock= 50 days of Production x Daily Demand
Let plug in the formula
Safety Stock=50*600
Safety Stock=30,000
Third step is to calculate the Lot Size using this formula
Lot Size= Demand During Lead Time + Safety Stock
Let plug in the formula for
Lot Size=1200+30,000
Lot Size=31200
Now let calculate How many kanbans do you need for this connector. Using this formula
Numbers of kanbans =Demand During Lead Time + Safety Stock / Size of Container
Let plug in the formula
Numbers of kanbans=31200/500
Numbers of kanbans=62.4kanbans
Therefore How many kanbans do you need for this connector is 62.4
How can you establish rapport during your first meeting with guest ?
The following is a list of six control plans.
Control Plans
a. Review shipped not billed sales orders
b. Turnaround documents
c. Deposit slip file
d. Procedures for rejected inputs
e. Computer agreement of batch totals
f. Document design
These are followed by a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure).
Control Goals or System Deficiencies
1. The shipping clerk could not read the quantity picked that had been written on the picking ticket by the warehouse clerks.
2. In a periodic/batch environment, helps to ensure the information system control goal of input completeness of the shipping notices.
3. Helps to ensure that all shipments are billed in a timely manner.
4. Meets the operations system control goal of efficiency of resource use by reducing the number of data elements to be entered from source documents.
5. Provides an "audit trail" of deposits.
Match the five control goals or system deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. A letter may be used only once, with one letter left over.
Answer:
1. f. Document Design.
2. e. Computer agreement of batch totals.
3. a. Review shipped not billed sales order.
4. b. Turnaround documents.
5. d. Procedures of rejected input.
Explanation:
The business in todays world has to meet customer demands in order to be successful. It should deliver goods timely and the processing lines should be efficient. The employees should work efficiently and should be able to complete their assigned tasks within time. There should be strict internal controls to avoid errors and frauds. When shipping clerk is unable to read quantity there should be defined document design which clearly shows the quantity in bold on the ticket.
Unsecured personal loans are based on ________., a. property values, b. collateral, c. private lending, d. creditworthiness
Answer:
creditworthliness
Explanation:
unsecured personal loans is a loan that does not require any type of collateral.
Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:
Answer:
Direct material price variance= $5,580 unfavorable
Explanation:
Giving the following information:
The standard price of $6.50 per gram.
During the month the company purchased 27,900 grams of the direct material at $6.70 per gram.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (6.5 - 6.7)*27,900
Direct material price variance= $5,580 unfavorable