Answer:
a. Total number of budgeted direct labor hours for the year = Direct labor hours for night lights + Direct labor hours for desk lamps
= 30,000*1/2 + 40,000*2
= 15,000 + 80,000
= 95,000 hours
b. Single plant-wide factory overhead rate using direct labor hours = Budgeted factory overhead / Budgeted factory hours
= $403,750 / 95,000 hours
= $4.25 per hour
c. Per unit factory overhead = Number of hours required to complete one unit * Factory overhead rate per hour
<u />
<u>Night light</u>
Per unit factory overhead = 0.5 * 4.25
Per unit factory overhead = $2.125 per unit
<u>Desk lamp</u>
Per unit factory overhead = 2 * 4.25
Per unit factory overhead = $8.50 per unit
Answer:
The amount recognized as a provision for loss contingency is $220,000
Explanation:
According to the United States Generally Accepted Accounting Principles (US GAAP), the provision for loss contingency should be recognized based on the estimated amount. If the range is given then we should report the lower amount or minimum amount
In the given question, two amounts are given i.e $220,000 and $250,000
So $220,000 should be reported
Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same.
Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same as contingent liability is recorded as footnotes to financial statements. They have no cash flow till the period the event occurs of which they are contingent.
Operational enterprise activities include inventory transactions, interest payments, tax payments, wages to personnel, and payments for rent. some other shapes of cash flow, which include investments, money owed, and dividends are not included in this phase.
A contingent liability is a liability that may or might not occur. This means the contingent legal responsibility will rely on destiny events. Long-time liabilities are predicted to pay through the years or the timeframe is extra than 12 months. However, short-term liabilities are predicted to pay within a year.
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Answer:
c. Materiality
Explanation:
The relevance of information is affected by its materiality. Information is material if omitting it or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity.
An error which is too trivial to affect a user’s understanding of financial statement is referred to as immaterial. There is no absolute measure of materiality that can be applied to all businesses. In other words there is no rule that says any item greater than 5% of profit must be material. Whether an item is material or not depends on its magnitude or its nature or both in the context of the specific circumstances of the business.
So based on the above discussion, the answer is c. Materiality
Answer:
C) home-country-based
Explanation:
The most appropriate payment method according to the above scenario is the country-based method.
This remuneration is one of the most used by multinationals, it provides international employees with a basic remuneration and incentive package, which matches the differences that occur due to the costs of the international assignment and the same assignment in the employee's country of origin. That is, the transferee remains on the payroll of the country of origin to receive his remuneration.
This payment method is used to protect expatriations between cost differences between home and host countries.
