<span>895 * 0.75 * 1.08 = 724.95$
800 - 724.95 =
75.05$</span>
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:
2.1%
Explanation:
The computation of continuously compounded risk-free rate of return is shown below:-
Continuously compounded risk-free rate of return = -In(number)
= -ln((38 + 3.60 - 2.01) ÷ 40) ÷ (6 ÷ 12)
= 0.020605786
or
= 2.1%
For a better explanation, kindly find the spreadsheet as attached.
Hence we have applied the above formula to reach the continuously compounded risk-free rate of return.
Answer:
B. debit Accounts Receivable $350 and credit Unearned Service Revenue $350
Explanation:
When the check was received for services yet to be performed, an asset in form of cash is recorded as well as a liability in form of deferred revenue. If the bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger.
To correct this entry, the amount credited to account receivable would be reclassified to Unearned or deferred revenue. by debiting accounts receivables and crediting unearned/deferred revenue.
