<u>Solution and Explanation:</u>
The following table has been made in order to find out the total variance cost that has been incurred and the total cost
<u>Particulars</u> <u>Cost formula based</u> <u>Flexible budget </u> <u>Actual</u> <u>Variance</u>
<u> on 50000 units</u> <u>on the basis of </u>
<u>60000 unit</u>
Direct materials $2 120000 $110000 10000 F
The direct labour $1 60000 60000 0
Variable overhead $1.5 90000 100000 10000 U
Fixed overhead $100000 100000 97000 3000 F
The total cost 370000 367000 3000 F
Where F stands for – favourable and U stands for unfavourable
The total variance cost after the above calculations is = $3000 F
Answer:
$328000
Explanation:
Given: Cost of machine= $880000
Residual value= 60000
Estimated life= 10 years
Company use straight line depreciation method.
∴ Depreciation =
⇒ Depreciation=
∴ Depreciation= per year.
Now, lets find the value of depreciation.
∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.
∴ Depreciation value after 6 years=
Depreciation value after 6 years=
Next, finding the value of machine after 6 years of depreciation.
Value of machine after 6 years=
∴ Disposal value of machine after 6 years of usage is , however, machine was sold at $225000.
Answer:
$12,000
Explanation:
The double-declining method records a higher depreciable amount in the first years of asset life. It uses double the rate used in the straight-line method.
Using the double-declining method, the depreciation rate for Fathom will be 40 % ({1/5 x100 } )
first-year depreciation- 2018
=40/100 x $50,000
=0.4 x 50,000
=$20,000
Book value= $50,000- $20,000= $30,000
Second-year depreciation- 2019
= 40 % x 30,000
=0.4 x $30,000
=$12,000
By using the double-declining-balance depreciation amount for year two = $12,000
Answer:
Debit Cash/Bank $48,500
Debit Service charge (p/l) $48,500
Credit Accounts receivable $50,000
Being entries to account for credit card payment of debt due from customers.
Explanation:
The credit card payment is a form of cash and cash equivalent that may be accepted by a company in place of debt owed by another company (a customer).
This is usually at a fee and may be done to ease the company's liquidity. The actual receivable will then be collected from the customer by the credit card company. This is a form of debt factoring.
Service charge
= 3% * $50,000
= $1,500
Amount received = $50,000 - $1,500
= $48,500
The accounts to be adjusted include cash/bank account, service charge (p/l) and accounts receivable.