Determining unit costs, variance analysis, and interpretation
big dog company, a manufacturer of dog food, produces its product in 1,000-bag batches. the standard cost of each batch consists of 9,000 pounds of direct materials at $0.40 per pound, 48 direct labor hours at $8.50 per hour, and variable overhead cost (based on machine hours) at the rate of $10 per hour with 16 machine hours per batch. the following variable costs were incurred for the last 1,000-bag batch produced:

direct materials 9,300 pounds costing $3,578 were purchased and used
direct labor 45 hours costing $450
variable overhead $225
machine hours used 18 hours
(a) determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead.

round your answers to 3 decimal places.
(b) for the last 1,000-bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.

round your answers two decimal places.
(c) which of the following is the most likely explanation for an unfavorable labor rate variance and a favorable labor efficiency variance?

-use of higher skilled employees and high efficiency equipment.
-use of poor quality materials resulting in overtime labor.
-use of low efficiency equipment by highly skilled employees.
-use of high efficiency equipment by undertrained employees.

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year. what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

In most states, a licensee must provide a(n) of any existing agency relationships to all parties

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.