Problem 10-14 basic variance analysis [lo10-1, lo10-2, lo10-3] becton labs, inc., produces various chemical compounds for industrial use. one compound, called fludex, is prepared using an elaborate distilling process. the company has developed standard costs for one unit of fludex, as follows: standard quantity standard price or rate standard cost direct materials 2.5 ounces $ 20.00 per ounce $ 50.00 direct labor 1.4 hours $ 12.50 per hour 17.50 variable manufacturing overhead 1.4 hours $ 3.50 per hour 4.90 $ 72.40 during november, the following activity was recorded relative to production of fludex: a. materials purchased, 12,000 ounces at a cost of $225,000. b. there was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of material remained in ending inventory. c. the company employs 35 lab technicians to work on the production of fludex. during november, they worked an average of 160 hours at an average rate of $12 per hour. d. variable manufacturing overhead is assigned to fludex on the basis of direct labor-hours. variable manufacturing overhead costs during november totaled $18,200. e. during november, 3,750 good units of fludex were produced . required: 1. for direct materials: a. compute the price and quantity variances.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is