Waterways Continuing Problem 25 Wate \"ideal\" at this point, but the management
ID: 371488 • Letter: W
Question
Waterways Continuing Problem 25 Wate "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the t uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not Materials Item Per unlt Cost 1 lb. 12 oz. 4 oz. 63¢ per lb. $1.00 per ib. 88¢ per lb. Direct labor Per unlt Cost Item Predetermined overhead rate based on direct labor hours $4.28 The January figures for purchasing, production, and labor are: 15 min. $8.00 per hr The company purchased 229,000 pounds or raw materials in January at a cost of 78¢ a pound. Production used 229,000 pounds of raw materials to make 115,500 units in January Direct labor spent 18 minutes on each product at a cost of $7.80 per hour. Overhead costs for January totaled $54,673 variable and $73,800 fixed g questions about standard costs. Your answer is partially correct. Try again What is the materials price variance?Explanation / Answer
a. the budgeted cost of material per unit= 88 Pounds, and the actual price per unit is= 78 Pounds
the total material variance= (actual unit cost- standard unit cost)actual unit purchased
= (78-88)229,000= 2,290,000 pounds favorable variance only.
(tha estimated cost of material= 88 pounds *229,000 and the actual cost is= 78pounds*229,000) the difference is favorable variance only.
Q1. oligopoly is the market where small number of players exists in the market and but they hold major market share. these firms are big in nature, well established in their area, and do well in the market. these firms produce their products with more unique features, which is called more product differentiation. where they have existed market and they frame strategies to retain existing customers and to attract more new customers. these firms introduce new and innovative products to attract customers and expand the market. the leader in the market will decides the prices, and the followers will follow the prices too. there are different strategies in price leadership in oligopoly market, they are
Dominant price leadership: in which one firm fix price and others must follow. there are no options for followers and they simply follow the price set by the leader in the market
barometric price leadership: in this the leader firm will discuss and fix price changes, where it assumes that the followers also implement the same
aggressive price leadership: in this the leader firm fix a price, in which the competitors will not be able to follow. this kind of strategy will kill the competitors in the market. best example recent JIO offer in mobile communication network channels in India.
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