1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sophie [7]
2 years ago
6

Hockey Accessories Corporation manufactured 21 comma 600 duffle bags during March. The following fixed overhead data pertain to​

March: Actual Static Budget Production 21 comma 600 units 22 comma 000 units Machineminushours 1 comma 150 hours 2 comma 200 hours Fixed overhead costs for March $ 84 comma 200 $ 92 comma 400 What is the amount of fixed overhead spending​ variance?
A. $ 6 comma 520 favorable
B. $ 6 comma 520 unfavorable  
C. $ 8 comma 200 unfavorable
D. $ 8 comma 200 favorable
Business
1 answer:
Agata [3.3K]2 years ago
4 0

Answer:

D) $8,200 favorable

Explanation:

Hockey Accessories Corporation manufactured 21,600 duffle bags during March. The following data pertain to ​March:

                                                      Actual                      Static Budget

Production                                 21,600 units                22,000 units

Machine hours                           1,150 hours                  2,200 hours

Fixed overhead costs                 $ 84,200                    $ 92,400

What is the amount of fixed overhead spending​ variance?

Hockey Accessories Corporation estimated its fixed overhead costs at $92,400, but the actual overhead costs were only $84,200. The difference between estimated and actual costs is $8,200 favorable variance (= $92,400 - $84,200) since the fixed overhead costs were lower than estimated.

You might be interested in
Plush Corporation purchased 100 percent of Common Corporation’s common stock on January 1, 20X3, and paid $450,000. The fair val
Oxana [17]

Answer:

Please refer the detail answer in the memo below

Explanation:

Date: 24 January 20XX

Subject: Review of Impairment of Goodwill

From: External Auditors

To: Chief Accountant, Plush Corporation

Upon review of the investment made by your company in Common Corporation, we believe that there are possible indications of the impairment of the goodwill initially recognized in the books upon acquisition.

At the time of Acquisition:

Consideration = $450,000

Fair Value of Net Assets = $430,000

Goodwill = $450,000 - $430,000 = $20,000

The new guidance issued by FASB, requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value.

However, if we follow the previous guidance of FASB, we have to test the impairment with the following three steps:

Step 1: We will compare the carrying amount of the net assets with the Fair value of Reporting Unit, and if the carrying amount exceeds the fair value, we will record the impairment.

Step 1: We will compute, implied value of goodwill by comparing the fair value of the reporting unit with the fair value of the identifiable net assets, if FV of net assets are higher, then there is no impairment, otherwise we will jump to Step 3.

Step 3: If the calculated implied value of the goodwill is lower than the actual goodwill at acquisition, than the difference is the impairment loss, however in case the implied value of the goodwill is higher than the actual goodwill at acquisition, no impairment shall be recorded.

Apparently, since the fair value of Common had increased to $485,000, there is no need to recognize the impairment loss on goodwill; however we believe that the estimated fair value of Common is less than the $430,000 and therefore impairment should be recorded.

7 0
2 years ago
If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choi
Brums [2.3K]

<u>Answer:</u> Option 1

<u>Explanation:</u>

If the convertible bonds are issued at discount then it will increase the numerator. Convertible bonds yields a fixed interest income. When the convertible bonds are issued at a discount then they can be converted into shares and discount is considered in the purchasing price of the stock.

In amortized bond the each payment goes towards the interest as well as the principle amount. Amortization reduces the credit risk as the principle is repaid on maturity or on default of the firm.

6 0
3 years ago
Consider the following information: the marginal products of labor for the US in producing Cars and Wheat are 24 and 18. Given t
stepan [7]

Answer:

0.75 wheat

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

the opportunity cost of producing cars, is the quantity of wheat that would have to be forgone to produce one car

18 / 24 = 0.75 wheat

7 0
2 years ago
Terri davis is planning to buy a new car. While on the internet she learned that the car has a base price of $16,007, options th
eduard
I’m pretty sure that the answer is 17,621.66
5 0
3 years ago
26. Which of the following best describes an entrepreneur? A) a person who forms and operates a business B) a person who invests
scoundrel [369]

Answer:

A) a person who forms and operates a business

Explanation:

An entrepreneur is a person who forms and operates a business. An entrepreneur is one of the factors of production. Other factors include land, labour and capital.

An entrepreneur takes up the financial risk of a business.

An entrepreneur earns profit or loss.

A shareholder is a person who invests in an existing business

A bondholder is a person who lends capital to a new business

I hope my answer helps you.

3 0
2 years ago
Other questions:
  • Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $83,000. The appra
    6·1 answer
  • A good or service is said to be scarce when:
    15·1 answer
  • What is a good website to create yourself, have a domain, and to sell things
    12·1 answer
  • Jones Company applies overhead based on direct labor hours. At beginning of the year, Jones estimates overhead to be $480,000, m
    7·2 answers
  • Explain why purely competitive markets tend to benefit consumers over producers.
    15·1 answer
  • A corporate charter specifies that the company may sell up to 20 million shares of stock. The company issues 12 million shares t
    7·1 answer
  • Revoked digital certificates are listed in a(n) ____, which can be accessed to check the certificate status of other users
    15·1 answer
  • Differentiate between manmade and natural attraction​
    15·1 answer
  • Rye Company has provided the following information: Weighted average number of outstanding common shares, 196,000 Net income, $4
    13·1 answer
  • You recently started a new job working with databases. you receive training on maintaining the database from your boss, gregor.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!