To simplify data handling to include the receipt of orders that have actually been placed in previous periods, the following six-level scheme can be used. (A number of different techniques are used in practice, but the important issue is to keep track of what is on hand, what is expected to arrive, what is needed, and what size orders should be placed.) One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 56, 56, and 206 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 16, 56, and 156, respectively; all other items have zero beginning inventory. We are scheduled to receive 16 units of A in Week 2, 56 units of E in Week 1, and also 56 units of F in Week 1. There are no other scheduled receipts. If 36 units of A are required in Week 8, use the low-level-coded bill of materials to find the necessary planned order releases for all components. Required: Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. (Leave no cells blank - be certain to enter "0" wherever required.) Period 1 2 3 4 5 6 7 8 9 10 Item A LT

Answer:

Option B                                      

Explanation:

In simple words, Fair use refers to the one of the patent protections designed to align the rights of copyright owners with that of the public's best interest in the broader dissemination and use of artistic works by enabling such restricted uses that would otherwise be deemed infringing complaints as a protection against copyright violation.

Thus, from the above we can conclude that the correct option is B .

Answer: opt value = 65

Explanation:

This is quite easy to solve.

we will take a step by step process to solving this problem.

attached below are images showing the sheet for the formula used to run the program as well as the output(answer).

Let us begin;

we have from the problem that the variables Given are;

Y which is the number of chicken flavored biscuits in a package

and X represent the number of chicken flavored biscuits in a package7

Taking LLP as follows:

Min Z = 1X + 2Y               where Z rep the Objective Minimum Function

subject to

1X + 1Y >= 40

2X + 4Y >= 60

1X + 0Y <= 15

X, Y >= 0

(i). attached is the excel sheet housing the formula

(ii). attached is the sheet generating the values

(iii). attached is the Excel solver

(iv). attached is final sheet showing the results

We have that the No of Liver Flavored biscuits and No of Chicken Flavored biscuits is 15 & 25

From the attached result, we have that the optimum solution value is 65

To find the optimal product mix, set up a linear programming problem to minimize cost while meeting nutritional requirements and constraints.

To find the optimal product mix for the package of dog biscuits, we can set up a linear programming problem. Let's assume the number of liver-flavored biscuits in the package is represented by L and the number of chicken-flavored biscuits is represented by C.

The objective function to minimize the cost would be 0.01L + 0.02C since it costs 1¢ to make 1 liver-flavored biscuit and 2¢ to make 1 chicken-flavored biscuit.

The constraints would be:

By solving this linear programming problem, we can find the values of L and C that minimize the cost while meeting the nutritional requirements and constraints.

Answer:

Consider a Caribbean cruise route served by two cruise​ lines, Carnival and Royal Caribbean. Both lines must choose whether to charge a high price ​($320​) or a low price ​($300​) to vacationers. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. ​ Carnival's profits are in red and Royal​ Caribbean's are in blue. Suppose the cruise lines decide to collude. At which outcome are joint profits​ maximized?

Joint profits are maximized when Carnival picks $320 and Royal Caribbean picks $320.

Explanation:

When Carnival picks $320 and Royal Caribbean picks $320, then joint profits are maximized.

Nash equilibrium would exist only when Royal chooses $300 and the carnival chooses $300.

However, if both Carnival and Royal Caribbean charge a lower price, both of them can earn a higher profit.

Carnival and Royal Caribbean can collude to set prices and act like a monopoly, which involves reducing output and raising prices to maximize profits.

In the scenario presented, Carnival and Royal Caribbean have the option to collude and set their prices to maximize joint profits. Collusion would involve agreeing to charge the same price to eliminate competition and act like a monopoly.

When firms collude in such a manner, they tend to reduce output and increase prices to maximize profits, just like a monopolist would. In the context of a payoff matrix, colluding to charge a higher price would typically result in higher joint profits when compared to both firms charging a low price.

For a perfectly competitive firm, the goal is to maximize profit by finding the level of output where total revenue exceeds total costs by the greatest amount, as demonstrated by the provided example of a raspberry farm with revenue and costs data.

Answer:

Contraction

Explanation:

The business cycle refers to the fluctuations that happen in an economic activity over time. This cycle has 4 stages that are:

-Expansion is when the economy grows and employment is higher.

-Peak is a transition between expansion and contraction and it is a point in which the economy reaches its highest output.

-Contraction is a stage in which growth stops and unemploymetnt rises.

-Trough is a stage in which the economy gets to its lowest point before a rise.

According to this, the answer is that in the context of the business cycle, Bruslon is most likely going through a period of contraction because there is an economic downturn that forced Loger's to lay off many employees.

Answer:

a. If you estimated that the natural rate of state is 5%, and therefore the actual proportion is 5.5%, therefore to understand the economic science policy making is associate approximate knowledge which would possibly mean that you might interpret the distinction as existence of an error in the results and thus it is not justify any change in policy.

b. If you estimated that the natural rate of state is 5%, and therefore the actual proportion is 8%, thus it is given the inaccuracy of economic science policy making, you're doubtless to consider that state has up considerably higher than the expected level. Conversely, you'd not acumen extended it'd hold policy to have an effect on a modification within the proportion.

To calculate the COGS, inventory, and purchases budget for Cool Logos, subtract the 30% gross profit margin from projected sales to determine COGS, then compute the desired ending inventory based on a fixed amount plus a percentage of the next month's COGS. Finally, adjust for beginning inventory to find the purchases needed.

To prepare the cost of goods sold (COGS), inventory, and purchases budget for Cool Logos for the months of October and November, we need to follow several steps. Initially, we ascertain the cost of goods sold by deducting the desired gross profit margin from the sales revenue. Cool Logos aims for a 30% gross profit, so the cost of goods sold would be 70% of the sales revenue. Then we calculate the desired ending inventory, which should not fall below $420,000 plus 20% of the following month's COGS. We use these figures to determine the total inventory required and the purchases needed for each month after considering the beginning inventory.

For example, in October, the cost of goods sold would be 70% of $2,240,000, which amounts to $1,568,000. The desired ending inventory for October would be $420,000 plus 20% of November's COGS (which is 70% of $2,378,000). We compute the total inventory required by adding the COGS to the desired ending inventory. The purchases for October are then the difference between the total inventory required and the beginning inventory, which is September's ending inventory. The same process is used to calculate the figures for November.

Answer:

Out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

Explanation:

Given the information:

Rachel's Designs has 1,800 shares of 5%, $50 par value

The company plans to pay total dividends of $15,000 in 2021

For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate

= 1,800*$50*5%

= $4,500

Since in 2019 and 2020 the dividend is not paid

The dividend arrears for 2019 and 2020 would be:

= $4,500 + $4,500

= $9000

=>   The total dividend is:

= $4,500 + $9000

= $13,500

So, for the common stockholder, it is

= $15,000 - $13,500

= $1500

Hence, out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

Answer:

$1,400

Explanation:

Let us assume the interest rate 5% be 0.05X = X

And, for interest rate 7% be 0.07X = Y

So the first equation is

X + Y = $2,000  ................ (1)

And, the second equation is

0.05X + 0.07Y = $112 .................. (2)

Now multiply the 0.05 in equation 1

0.05X + 0.05Y = 100

0.05X + 0.07Y = $112

Now solving these above equations

0.02Y = 12

Y = 600

Now put the Y values to the first equation

X + 600 = $2,000

Y = $1,400

Answer:

we can prepare a matrix to determine the best strategy:

                                                   Disney

                                  strategy 1             strategy 2

                                   $75 /                   $25 /

          strategy 1                     $75                $300

Paramount

          strategy 2        $300 /                 $150 /

                                               $25                 $150

What is Disney's dominant strategy?

Disney's dominant strategy is strategy 1 with an expected value = $75 + $300 = $375. Strategy 2's expected value is only $175.

Paramount's dominant strategy is strategy 1 with an expected value = $75 + $300 = $375. Strategy 2's expected value is only $175.

What is the Nash equilibrium in this game?

There is a Nash equilibrium because both players' (Disney and Paramount) dominant strategy is Strategy 1.

Disney does not have a dominant strategy as their profit varies depending on Paramount's decision. The Nash Equilibriums are where both firms use Strategy 1 (option 'A') and where both firms use Strategy 2 (option 'D').

To determine Disney's dominant strategy, we analyze the given payoff matrix. If Paramount chooses Strategy 1, Disney's profit would be $75 million with Strategy 1 and $300 million with Strategy 2. If Paramount uses Strategy 2, Disney makes $150 million with Strategy 1 and $25 million with Strategy 2. Thus, there is no single strategy for Disney that always gives them a higher profit regardless of Paramount's choice. Therefore, Disney does not have a dominant strategy.

To find the Nash Equilibrium, we need to look for a situation where neither of the firms would want to unilaterally switch their strategy, given that the strategy of the other firm stays the same. From the given payoff matrix, using Strategy 1 gives Paramount $75 million if Disney uses Strategy 1, and $300 million if Disney uses Strategy 2. Using Strategy 2 gives Paramount $25 million if Disney uses Strategy 1, and $150 million if Disney uses Strategy 2. From Disney's perspective, we have already discussed. Given these payoffs, we see that the situation where both firms use Strategy 1 (i.e., option 'A') and where both firms use Strategy 2 (i.e., option 'D') are Nash Equilibriums, since neither firm would want to switch strategies unilaterally in those cases.

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Answer:

$52,521

Explanation:

As per Given Data

Project Y

Costs $120,000

Cash Inflows

Year 1       $64,000

Year 2      $67,000

Year 3      $56,000

Year 4      $45,000

Required rate of return = 16%

Weighted Average cost of Capital = 13%

Net Present Value

As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.

Costs $120,000

Year       Cash Inflows    Discount factor 13%  Present values

Year 0      $(120,000)     (1+13%)^-0                 $(120,000)

Year 1       $64,000         (1+13%)^-1                  $56,640

Year 2      $67,000         (1+13%)^-2                 $52,471

Year 3      $56,000         (1+13%)^-3                 $38,811

Year 4      $45,000         (1+13%)^-4                 $27,599

Net present value                                            $52,521

Answer: Federal Fund Rate = 0.15%

Discount rate = 1.15%

Explanation:

The Federal Fund Rate is the rate at which banks can borrow money from other Banks and is listed as 0.15%. This rate is usually lower than the discount rate as is usually suggested by the Federal Open Market Committee.

The Discount rate is the rate at which Banks can borrow from the Fed which is stated to be 1.15%. This rate is set by the Fed and can be used to control interest rates by either reducing or increasing the cost of borrowing for Banks which banks then reciprocate.

Answer:

A common workflow error that can cause duplicate expenses in QuickBooks Online is:

Duplicating any transaction.

Explanation:

The reason behind this is that duplicating transactions is very common because it might originate before the accounting process is made. It can be executed by any manager or someone in the resources acquisitions department. That is why the books have to be reviewed at two different moments from two different departments. Accounting first and then finance. To check that everything is correct.  

Answer:

Create a bill to record a vendor expense, and create a check to the vendor for the same expense

Explanation:

Answer:

$460,000 increment in the operating income

Explanation:

Production = 75000

Unit sales price = $420

Sales revenue                                          31,500,000

Cost of sales

Manufacturing (260*75000)                    19,500,000

Gross profit                                               12,000,000

Marketing and admin (40*75000)           3,000,000

Manufacturing                                           770000

Marketing * Admin                                     200000

Operating income                                     8030000

Revenue for special order = 375*4000 = 1,500,000

Manufacturing cost =4000*260                 1,040,000

Gross profit                                                      460,000

There will be an increment of $460,000 in the operating income.

Final answer:

The operating income of Sky High Seats would increase by $460,000 if the company accepts the special sales order for 4,000 seats at $375 per unit, as the fixed costs remain unchanged and no variable marketing and administrative costs will be incurred for this order.

Explanation:

To determine how Sky High Seats' operating income will be affected by the special sales order of 4,000 airplane seats at $375 each, we can calculate the incremental profit from the order.

Special Order Revenue = 4,000 seats  imes $375 per seat = $1,500,000

Total variable costs for the special order are only from manufacturing since the marketing and administrative costs do not apply. So, the variable cost per unit is $260.

Special Order Variable Costs = 4,000 seats  imes $260 per seat = $1,040,000

Incremental profit is then calculated by subtracting the special order variable costs from the special order revenue.

Incremental Profit = Special Order Revenue - Special Order Variable Costs = $1,500,000 - $1,040,000 = $460,000

Since the fixed costs remain unchanged, the incremental profit represents the amount by which the operating income would increase if Sky High Seats accepts the special order.

Answer:

total sales $820 million

net income $425 million

total assets $750 million

total liabilities $735

1.2 million outstanding common stocks

an offer was made to buy their assets at $742.5 million

company's book value per share:

= (total assets - total liabilities) / total number of outstanding common stocks

= ($750,000,000 - $735,000,000) / 1,200,000 = $12.50 per stock

company's liquidation value per share:

= (total offer - total liabilities) / total number of outstanding common stocks

= ($742,500,000 - $735,000,000) / 1,200,000 = $6.25 per stock

Final answer:

The depreciation on the building for 2021 is $573,333.33.

Explanation:

The depreciation on the building for 2021 can be calculated using the straight-line method. The original useful life of the building was 20 years, and the residual value was $1.1 million. However, in 2021, the estimates were changed to a 15-year useful life and a residual value of $510,000. To calculate the depreciation for 2021, we need to find the annual depreciation expense.

First, we calculate the depreciable cost, which is the initial cost minus the residual value. The initial cost of the building was $9.1 million, so the depreciable cost is $9.1 million - $510,000 = $8.59 million.

Next, we divide the depreciable cost by the new useful life to find the annual depreciation expense: $8.59 million / 15 years = $573,333.33.

Therefore, the depreciation on the building for 2021 is $573,333.33.

Answer:

$2,365.02

Explanation:

For computing the price we have to applied the Present value formula i.e to be shown in the attachment        

Given that,  

Future value = 2,000

Rate of interest = 5.36%  ÷ 2 = 2.68%

NPER = 14 years  × 2 = 28 years

PMT = $2,000 × 7.230%  ÷ 2 = $72.3

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $2,365.02

The 14 years is taken from

= Year 2033 - year 2019

= 14 years

Answer:

Cost of completed units = $158,240

Explanation:

Cost of completed units = Cost per equivalent unit × no of units

Equivalent unit = Degree of completion × units of work

Equivalent units of material

( 9200× 100%)   + (3000×100%) = 12,200 unit

Cost per equivalent unit of material = $97,600/12,200 units= $8

Equivalent units of labour and overhead

(9200× 100%) + (3000× 25%) = 750

Cost per equivalent unit of labour and overhead

=( 73,630+17910)/9950 =$9.2

Cost of completed units

= $(9.2+8)× 9,200 = 158,240

Cost of completed units = $158,240

Answer: the offer price is set based on competitive bidding by investors.

Explanation: A Dutch auction is defined as a type of reverse auction that starts at a high price that is gradually reduced by the auctioneer until someone is willing to buy or when it reaches it predetermined price.

Here, the price is determined based on competitive bidding by investors.

Answer:

e. The offer price is set based on competitive bidding by investors.

Explanation:

A Dutch Auction Underwriting is a form of public auction wherein, several investors make their bidding and then, the highest price is the amount at which the offering would be sold. This is a form of competitive bidding among the investors. The auctioneers wait for all the investors to make their bidding before selecting the highest.

Sometimes also in Dutch Auction, the price tag could be reduced, till there is a buyer for it. Once the going price is good enough by the bidder, the auction can then come to a successful end. Investment bankers are the underwriters in a public offering like this and they determine the prices of the items being sold.

Answer:

NPV = $125,237.6

Explanation:

Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.

Net Present Value of Model B14

Present Value (PV) of annual cash inflow = A×  (1- (1+r)^(-n) )/r

 A- annual cash inflow - 80,000, r-12%, n- 10

PV of cash inflow = 80,000× ((1- (1.012)^(-10))/0.12 =  452,017.84  

PV of Scrap value = F× (1+r)^(-n)

                            = 10,000 × (1.12)^(-10)

                             = 3,219.73  

NPV = 452,017.84+ 3,219.73  - 330,000  =  125,237.57  

NPV = $125,237.6

Answer:

$125,238

Explanation:

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

                                                          B14 Model  F54 Model

Investment                                        $330,000   $230,000

Useful life​ (years)                                10                  10

Estimated annual net cash inflows $80,000    $33,000

Residual value                                  $10,000    $18,000

Required rate of return                      12​%               8​%

B14 Model  

First calculate Present value of each cash flow.

PV of Initial investment = $330,000

Present value of cash inflows = $80,000 x [ 1 - ( 1 + 12% )^-10 / 12% ] = $452,018

Present value of Residual value = $10,000 x ( 1 + 12% )^-10 = $3,220

Net present value = PV of Initial investment + Present value of cash inflows +  Present value of Residual value

NPV = $(330,000) + $452,018 + $3,220 = $125,238

Answer:

$21.67

Explanation:

Exhibit 21-3 is attached with the answer .Please find it.

Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.

Cost of producing 60 units

Variable cost = $800

Fixed cost = $500

Total cost = $800+500 = $1,300

Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67

Answer:

$245,277

Explanation:

The dairy makes 454 pounds per day of which only 62 pounds is sold, thus the extra pounds of cheese per day are (454-62) = 392.

Now, the dairy operated 355 days a year, hence the annual cost of storage is,

(355 * 392) * $1.01 => $140,552.

Now the setup cost is $295 a day, so the annual would be,

(295 * 355) => $104,725.

Hence the minimum total annual costs will be = 140552+104725 = $245,277.

Hope I made myself clear.

Thanks

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

Answer:

$60,000

Explanation:

The computation of change in net working capital is shown below:-

Change in net working capital = Increase in cash + Increase in accounts receivables + Increase in inventories - Increase in payable - Increase in accruals

= $20,000 + $40,000 + $60,000 - $50,000 - $10,000

= $120,000 - $60,000

= $60,000

Therefore for computing the change in net working capital we simply applied the above formula.

Answer:

Marigold Corp.

2021 Earnings per common share:

Common Stock:

Dec 31, 2020 Balance = 305,000 shares

Jan 30, 2022 Stock dividend = 305,000 shares

Balance on Jan 30 = 610,000 shares

Net Income for 2021 = $1,135,000

6% Cumulative preferred dividend for 2020 & 2021 = $115,200 ($57,600 x2)

2021 Earnings per share = ($1,135,000 - $115,200)/305,000 = $3.34

Explanation:

Earnings per share is the net income dividend by the number of outstanding stock.

As at December 31, 2021, the common stock outstanding equals 305,000 shares.

The preferred stock is cumulative.  This means that whether dividend is declared or not in a year, it continues to be accumulated year on year until when the company is able to pay.

Since 2020 dividend for preferred stock was not declared, in 2021 when the common stock dividend was declared, the previous year's and the present would be accumulated and deducted from earnings to arrive at earnings for common stockholders.

Answer:

Marigold's 2021 earnings per common share should be $1.77

Explanation:

Given:

Net income for 2021: $1,135,000

Num. of common stck shares: 305,000

Cumulative preferred stock outstanding: 9600 shares of 6%, $100 par value.

The dividend to be accrued on preference shares=

9,600 * $100 * 6% = $57,600

Share outstanding will be:

305,000 * 2 = 610,000

Earnings available to common share-holders =

(Net income-Preferred dividend) =

$1,135,000 - $57,600 = $1,077,400

Earnings per share is calculated as:

$1,077,400 / 610,000 = $1.77

Therefore, Marigold's 2021 earnings per common share should be $1.77

Answer:

$23,000

Explanation:

The computation of the budgeted excess or (deficiency) in cash flows is shown below:-

Budgeted excess or (deficiency) in cash flows at the end of the first quarter =  Cash Inflows - Cash Outflows

=$60,000 - $25,000 - ($8,000 - $1,000) - $5,000

= $60,000 - $25,000 - $7,000 - $5,000

= $23,000

Therefore for computing the Budgeted excess or (deficiency) in cash flows at the end of the first quarter we simply applied the above formula.

Answer:

a. $2,910

b. $2,910

c. $2,210 loss

Explanation:

Note: See the attached excel file to see how the depreciation is calculated.

Since the useful life is 10, the normal depreciation rate is 10%. Therefore, 200% double declining depreciation rate implies 20% rate to be used (i.e. 10% * 200% = 20%).

a. What will the depreciation charge be in year ten​?

Since the salvage value at year ten is zero, the depreciation charge in year 10 is $2,910.

b. What is the book value at the end of year nine​?

The book value at the end of year nine = $2,910.

c. What is the gain​ (or loss) on the disposal of the device if it is sold for ​$700 after nine ​years

Loss = Sales proceed - book value at the end of year nine = $700 - $2,910 = 2,210 loss

Answer:

Holocratic Organization have no structure this is not possible to manage the work if your business is very big(organization)

A boundaryless organization fosters higher job satisfaction, personal growth, and a sense of ownership for employees, but can also lead to role ambiguity, limited advancement opportunities, and potentially less job security.

Advantages of a Boundaryless Organization

One of the advantages of being employed by a boundaryless organization is the promotion of self-managed teams. By reducing hierarchy, team members can complete tasks and solve problems independently, leading to higher job satisfaction, increased self-esteem, and significant opportunities for personal growth. The organizational benefits include increased productivity, flexibility, and lower turnover rates. For lower-level employees, this structure can provide a stronger sense of ownership over their work. Additionally, the absence of hierarchy fosters a collegial environment where even entry-level employees can provide feedback to directors.

Disadvantages of a Boundaryless Organization

However, a boundaryless organization might not be without its drawbacks. Without the traditional structure of a hierarchy, employees might experience role ambiguity and a lack of guidance. Opportunities for advancement may also be limited due to fewer management layers. Although such organizational structures may satisfy an employee's self-actualization needs, they might not provide the same level of job security that comes with working in more traditional, hierarchically structured companies.

Answer:

Overhead rate is $30.4

So option (c) is correct option

Explanation:

We have given total estimated overhead = $85120

Estimated direct labor hours = 2800

Actual manufacturing overhead for the year = $86870

Actual labor hour = 2700

We have to find overhead rate for the year

Overhead rate is equal to the ratio of estimated overhead to estimated labor hour

Therefore overhead rate [tex]=\frac{85120}{2800}=30.4[/tex]$

So option (c) is correct

Answer:

$27,000

Explanation:

Computation of the given data are as follows:

Net operating income =  Contribution margin per unit × Reqd. Sales Unit - Fixed expenses

Where, Contribution margin per unit = Contribution margin ÷ Sales Unit

= $132,000 ÷ 6,600

= $20

So, by putting the value in the formula, we get

= $20 × 6,500 - $103,500

= $130,000 - $103,000

= $27,000

Answer:

$18,810 Unfavorable

Explanation:

The computation of the overhead volume variance is shown below:-

Overhead volume variance = Budgeted Overheads - Recovered Overheads

= (20,700 × $4.45 + $54,000) - (20,700 × $6.15)

= $92,115 + $54,000) - (20,700 × $6.15)

= $146,115 - $127,305

= $18,810 Unfavorable

Here, the budgeted overhead is more than recovered overhead so it becomes unfavorable.