Answer:
Fixed overhead spending variance $
Budgeted fixed overhead cost (12,000 hrs x $2) 24,000
Less: Actual fixed overhead cost <u>26,000</u>
Fixed overhead spending variance <u> 2,000(A)</u>
Explanation:
In this case, we need to calculate the standard fixed overhead application rate, which is the ratio of Budgeted fixed overhead cost to budgeted direct labour hours (normal capacity). Fixed overhead spending variance is the difference between budgeted fixed overhead cost and actual fixed overhead cost. Budgeted fixed overhead cost is budgeted hours multiplied by standard fixed overhead application rate.
Answer and Explanation:
The journal entries are shown below:
1. Equipment($45,000 + $2,200 + $700 + $1,000) $48,900
To Accounts payable $47,200 ($45,000 + $2,200)
To Cash $1,700
(Being the equipment is purchased on cash and credit)
Since the equipment is purchased so it would be debited and the other two accounts i.e account payable and the cash is credited
2.Prepaid insurance $900
To Cash $900
(Being the payment is recorded)
Since there is a prepaid insurance and the same is increased in assets so it would be debited and the cash is paid so it would be credited
Answer:
$4,000
Explanation:
For computation of the government's total support payments to producers first we need to find out the surplus units which is shown below:
Floor price = $40
= 
= 280 - 180
= 100
Therefore,
The Total support payments to producer = Price floor × Surplus units
= $40 × 100
= $4,000
So, for determining the total support payment to producer we simply multiply the price floor with surplus units.
Answer:
A. Standardized Product Stage.
Explanation:
Standardized product stage basically is when a production moves to developing country which then exports to developed country.
Answer:
C) performance of the contract is commercially impracticable.
Explanation:
Contract law contemplates certain situations where performing the contract is either difficult or impossible and therefore the party is not liable for breaching the contract.
Commercial impracticability applies to contracts where the performance of at least one party is impracticable and cannot be accomplished.
In this case, Quinn cannot perform his duty since the price of scrap steel increased beyond any reasonable price contemplated in the contract. Since Quinn is not responsible for setting the price of scrap steel, he is not liable for breaching the contract.
