Management should focus its sales and production efforts on the product or products that will providea. the lowest product costsb. the lowest direct labor hoursc. the highest sales revenued. the maximum contribution margin The following data relate to direct labor costs for the current period:Standard costs 7,500 hours at $11.70Actual costs 6,000 hours at $12.00What is the direct labor time variance?a. $18,000 favorableb. $17,550 unfavorablec. $17,550 favorabled. $18,000 unfavorable Which of the following is not a factory overhead allocation method?a. factory costingb. multiple departmental ratesc. activity-based costingd. single plantwide rate

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Description: Management should focus its sales and production efforts on the product or products that will providea. the lowest product costsb. the lowest direct labor hoursc. the highest sales revenued. the maximum contribution margin The following data relate t

solution note Dear student as per the Q&A guideline we are required to answer the first question only . Please post the remaining questions again to be answered by other experts Answer to first question Concept Focus of management Management shall focus to increase the profitability of an organization . The main object of the business is to earn maximum profit . The pareto rule shall be applied here . There are various products produced and sold within an organization but the management shall focus on that area which generates more profit . Though the revenue may be less from such product but they have higher yield .Answer Based on above explanation The correct answer is option d. the maximum contribution margin The main object of the business is to earn maximum profit . The pareto rule shall be applied here . There are various products produced and sold within an organization but the management shall focus on that area which generates more profit. The higher the contribution margin earned the higher the net income of an organization will be Incorrect answers the lowest product costs If the product consumes lowest cost it does not mean we have to focus on that . Focus shall be on product with maximum contribution margin the lowest direct labor hours If the product consumes lowest direct labor hours it does not mean we have to focus on that . Focus shall be on product with maximum contribution margin the highest sales revenue The highest sales revenues does not have the highest profitability all the time

Answered: Management should focus its sales and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Management should focus its sales and production efforts on the product or products that will provide

a. the lowest product costs

b. the lowest direct labor hours

c. the highest sales revenue

d. the maximum contribution margin

The following data relate to direct labor costs for the current period:

Standard costs	7,500 hours at $11.70
Actual costs	6,000 hours at $12.00

What is the direct labor time variance?

a. $18,000 favorable

b. $17,550 unfavorable

c. $17,550 favorable

d. $18,000 unfavorable

Which of the following is not a factory overhead allocation method?

a. factory costing

b. multiple departmental rates

c. activity-based costing

d. single plantwide rate

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