Answer:
Variable manufacturing overhead rate variance= $677.1 unfavorable
Explanation:
Giving the following information:
Standard:
Variable overhead 0.3 hours $ 7.80 per hour
Actual output 5,000 units
Actual direct labor-hours 1,110 hours
Actual variable overhead cost $ 9,340
<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 9,340/1,110= $8.41
Variable manufacturing overhead rate variance= (7.8 - 8.41)*1,110
Variable manufacturing overhead rate variance= $677.1 unfavorable
Answer:
Gain on disposal = $7600
Explanation:
As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.
The formula for depreciation expense under straight line method is,
Depreciation expense per year = (Cost - Salvage value) / Estimated useful life
Depreciation expense per year = (24000 - 0) / 5
Depreciation expense per year = $4800 per year
Depreciation expense for three months = 4800 * 3/12 = $1200
Accumulated depreciation 1 April 2024 = 14400 + 1200 = $15600
To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.
NBV = Cost - Accumulated depreciation
NBV = 24000 - 15600
NBV = $8400
Gain on disposal = 16000 - 8400
Gain on disposal = $7600
Answer:
B. I and II only
Explanation:
I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services
A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.
