Answer: 75
Explanation:
The required sales volume if the Abner Corporation’s monthly fixed costs are $5,000 per month will be:
Required sales = (Fixed cost + target profit) / (Selling price - AVC)
= (5,000 + 10,000) / (300 - 100)
= 15,000 / 200
= 75
Therefore, the required sales volume is 75.
Answer:
$66,200
Explanation:
Given,
Purchases in May = $59,000
Purchases in June = $78,000
Purchases in July = $92,000
All purchases are paid 40% in the month of purchase and 60% the following month.
Therefore,
Amount paid in June = 60% purchases in May + 40% Purchases in June
= 60% × $59000 + 40% × $78000
= $35000 + $31200
= $66,200
Answer: They are studying Macroeconomics.
Explanation: Macroeconomics is a branch of economy that deals with the study of demand and supply and overall economic activities happening around as a whole instead in parts. Thus, when economists are studying aggregate demand and supply, they are studying macroeconomics and not microeconomics.
Answer:
Jone Manufacturing
Total Overhead Variance = $2,000U.
Explanation:
Variance is the difference between budgeted and actual expense. It is favorable when the actual is less than the budgeted amount. It is unfavorable when the actual is more than the budgeted amount. It is neither favorable nor unfavorable when the actual equals the budgeted amount.
Variance analysis as a budgeting tool is used to evaluate the performance of management in managing costs, relative to the activity levels.
In Jones Manufacturing, actual and budgeted costs are calculated as follows:
Actual costs:
Fixed overhead = $8,000
Variable overhead = $4,600
Total = $12,600
Budget costs:
Fixed overhead = $10,000 (2,000 hours x $5)
Variable overhead = $4,600
Total = $14,600
Variance = budgeted overhead minus actual overhead
= $14,600 - $12,600 = $2,000U
Answer:
E) General journal
Explanation:
The general journal is used to record all the accounting transactions carried out by a company. If the company uses an accounting tool software or a more complete ERP software, the transaction should be recorded immediately or as soon as possible.
For example, the journal record for this transaction should be:
- Dr Accounts Payable account 6,000
- Cr Cash account 6,000
