ACC502

Name: Alfeer Abraar Hussain

ID: 2021002092

Question 1
 Question 2
a) DM Price variance:
= (standard price - actual price) * actual quantity used

= ($7-$8) *6,375

= $6,375 Unfavourable

Actual quantity used = $51,000 / $8 = 6,375

b) DM Quantity variance:
= (standard quantity - actual quantity) * standard price

= (6,750-6,375) * $7

= $2,625 Favourable

Standard quantity = 2,700 *2.5 kilograms per unit

= 6,750

c) DL Efficiency variance:
= (standard hours - actual hours) * standard rate

= (6,750 - 6,210) *$21

= $11,340 Favourable

Standard hours = 2,700 *2.5 hours per unit

= 6,750 hours

Actual hours Worked = $118,611 / $19.10 per hour

= 6,210 hours

d) CL Rate Variance:
= (Standard rate - actual rate) * actual Hours worked

= ($21 - $19.10) 6,210

= $11,799 Favorable
 Question 3
a) Contribution margin = Sales cost of product - variable cost of product = 500-300 =200$
Contribution margin ratio = 200/500 = 0.4 or 40%

b) Let x be number of units sold.

At breakeven point, sales cost = cost of production

500x = 500,000 + 300x

x = 500,000/200 =2500 units

c) Fixed cost after increase of 10% = 1.10 x 500,000 = 550,000

New breakeven point

500x = 550,000 + 300x

x = 550,000/200 = 2750 units

d) To earn profit of 1,000,000$

2500 is the break-even point. After that each unit contributes 200$ to the profit.

Number of units after break-even point = 1,000,000/200 = 5000 units

Total number of units = 5000+2500 = 7500 units

e) If the improved product is used, the variable cost of a unit increases by 50$
The new variable cost is 350$

To obtain 1,000,000 profits

1,000,000 = 150x - 500,000 (150 is the profit from each unit)

x = 1,500,000/150 = 10,000 units

 Question 4

2. Advantages of JIT purchasing- below is the mentioned three advantages of JIT

 Waste Reduction: The JIT inventory management model eliminates overordering and

excess of all kinds.
  Improved Efficiency: JIT eliminates the costs that come with extra raw materials,
unneeded inventory and product storage.

 Improve Quality: A flexible workforce can focus on making quality products with
lower defect rates. Better outcomes increase customer satisfaction and reduce the
cash outlay for production.
The concern is for placing frequent order and which leads to higher ordering cost, and to
reduce that Wood can choose Optimal order quantity or Economic order Quantity (EOQ)
size in order to maintain the cost to the most economic level which will ultimately lead to
lower ordering cost.

Question 5
Response time measures the performance of a single transaction or query. Response time is
generally treated as the elapsed time from the moment a user enters a command or initiates a
function to the moment the application indicates that the command or function is complete. The
response time consists of five main components, namely DNS time, connection time, SSL handshake
time, first byte and download time.

First, we're going to resolve the domain names on our location monitoring servers, which is the
DNS time
This is the time it takes to resolve the monitored domain, i.e., look up the IP address.
As soon as the domain name is resolved, we send an HTTP request to the server.

The connection time

here includes the time it takes to send the HTTP request and to receive the HTTP response. Once
connected, the time required to securely negotiate the SSL handshake is recorded for all HTTPS-
based URLs.
The server starts sending the response in packets, and this is where the first byte and download time
come into play.

The first byte time

It is the time the first packet or byte was received after a successful connection to the destination
server. The time of the first byte is the type of measurement to check how quickly the server
responds to our request. If the first byte time is high, it means the server is slow.

The Last time byte

the time is when we got the full response from the destination server

The difference between the time of the last byte and the time of the first byte is the download time,
which depends on the size of the content and the speed of the server.