Answer: A. Products were overcosted during the year.
Explanation:
At the budgeted figures of $25,000 fixed overhead costs and the 2,000 units of production, the predetermined fixed overhead rate is:
= 25,000 / 2,000
= $12.50 per unit
However, the company then produces 2,200 units at the same cost of $25,000 making the actual predetermined fixed overhead rate:
= 25,000 / 2,200
= $11.36 per unit
<em>The actual rate is less than the predetermined rate which means that the products had originally be overcosted by being apportioned higher expenses. </em>
Answer:
At least four core functions can be identified.[1] The financial sector should provide the following services:
Value exchange: a way of making payments.
Intermediation: a way of transferring resources between savers and borrowers.
Risk transfer: a means for pricing and allocating certain risks.
Liquidity: a means of converting assets into cash without undue loss of value.
Answer:
A. Increase cash by $120,000 and increase contributed capital by $120,000
Explanation:
when a company issues common stock then the company's cash balance and shareholders fund increases.
in this case, the company issued 2,500 shares of common stock at price $48;
The effect increase cash = 2,500*48
= $120,000
The effect increase contributed capital = 2,500*48
= $120,000
Therefore, The the correct balance sheet effect is, increase cash by $120,000 and increase contributed capital by $120,000.
Answer: Functional Structure
Explanation: Leslie should look for a position in a firm with a functional structure, in order for her to gain full in-depth knowledge in her area of specialty Corporate Tax.
An organization with functional structure is one which assign it's employees to job roles which are specifically their areas of specialization.
Answer: $5,440
Explanation:
When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.
This company estimates that they will have 0.6% of credit sales uncollectible.
There are also $790,000 in sales of which all are on credit.
The Uncollectible estimate is therefore,
= 790,000 * 0.6%
= $4,740
This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.
= 4,470 + 700
= $5,440
Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.
