Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
<u>To calculate the variable overhead spending variance, we need to use the following formula:</u>
<u></u>
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
Answer: The correct answer is a). The sum of the debits will equal the sum of the credits.
Explanation: When a journal entry is posted as same amount to both the debit and credit it balances up in the trial balance.
In the same vein, irrespective of the error in the ledger raised and posted in the trial balance, the sum will be equal on both the debit side and the credit side.
Answer:
increase its production of building stone
Explanation:
Answer: b.segregation of duties
Explanation:
Segregation of duties as an internal control ensures that there are multiple people doing activities that if left to one person can leave the company at the risk of fraudulent activity. It also helps to reduce the incidence of errors in reporting because more than one person will be cross-checking transactions.
There should be more segregation of duties in this small-town retail store. For instance, the sales clerk should not be responsible for both the counting and comparison to the cash register tape because they could have omitted sales from the machine and then simply taken the money from the cash when counting. A different person should count the cash to see if it tallies with the cash register tape.
Answer:
$32,160.00
Explanation:
Each of the expenses would be allocated as follows:
Advertising expense = (300,000/1,000,000) × 30,00 =9,000
Rent ( 3400/10,000 24000) × 24,000 = 8,160
Administrative expenses (8/24 × 45,000) = 15,000
Total expense allocated to Department B
= 9000+ 8160 + 15000
= $32,160.00
