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Rainbow [258]
3 years ago
5

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill

sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 5,100 of these meals using 2,000 direct labor-hours. The company paid its direct labor workers a total of $28,000 for this work, or $14.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $13.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 5,100 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 5,100 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
Business
1 answer:
Ivanshal [37]3 years ago
3 0

Answer:

1. 2,040 Hours

2. $27,540

3. 460 U

4.Labor rate variance = 1,000 U , Labor efficiency variance = 540 F

Explanation:

1. Standard labor hour allowed = (5,100 * 0.40) = 2,040 Hours

2. Standard labor cost = (2,040 * $13.50) = $27,540

3. Labor spending variance = (Standard cost - actual cost)

Labor spending variance = (27,540 - 28,000)

Labor spending variance = 460 U

4. Labor rate variance = (Standard rate - Actual rate) * Actual hours

Labor rate variance = ($13.50 - $14) * 2000

Labor rate variance = 0.50 * 2,000 U

Labor rate variance = 1,000 U

Labor efficiency variance = (Standard hour - Actual hour) * Standard rate

Labor efficiency variance= (2,040 - 2,000) * $13.50

Labor efficiency variance = 40 * 13.50 F

Labor efficiency variance = 540 F

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The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credit
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Answer:

<u>Blueboy Cheese Corporation </u>

<u>Income Statement</u>

<u>December 31, 2021</u>

<u>Account Title                                  Debits                      Credits </u>

Sales revenue                                                                     680,000

Less Cost of goods sold               408,000

Gross Profit                                                                          272,000

less

Salaries expense                       108,800

Rent expense                           18,000

Depreciation expense             53,000

Interest expense                        3,900

Advertising expense                  3,600

<u>Un adjusted Profit                                                              84,700</u>

<u> </u><u>Adjusted Profit                                                                  82,900     </u>                            

<u>Blueboy Cheese Corporation </u>

<u>Balance  Sheet</u>

<u>December 31, 2021</u>

<u>Account Title                                  Debits                      Credits </u>

Cash                                               51,900

Accounts receivable                    290,000                                

Inventory                                      43,000

Office equipment                         308,000

                                       

Accounts payable                                                             56,000

Notes payable (due in six months)                                    39,000

Common stock                                                                    400,000

Retained earnings                115,000 + 82,900=              197,900

<u>                                                                                                               </u>

<u>Total                                            $ 692,900                         692,900</u>

<u />

Closing Entries

Dec 31            Sales Revenue             $680,000 Dr

                             Income Summary                    $680,000 Cr

The first closing entry transfers credit balances in revenue ( and gain ) accounts to the income summary accounts.

Dec 31          Income Summary          $ 187,300 Dr

                               Salaries expense                       108,800 Cr

                                Rent expense                           18,000 Cr

                                 Depreciation expense             53,000 Cr

                                     Interest expense                        3,900 Cr

                                       Advertising expense                  3,600 Cr

The second closing entry transfers debit balances in expense ( and loss) to the income summary accounts.

Dec 31                    Income Summary            $ 82,900

                                    Retained Earnings Accounts            $ 82,900

The third entry transfers the balance of income summary account to the owner's capital account or retained earnings account.

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Explanation:

Please see attachment .

3 0
3 years ago
Nevada Boot Co. reported net income of $217,400 for its year ended December 31, 2018. Purchases totaled $152,800. Accounts payab
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Answer:

Operating cash flows = $208,000

Explanation:

we know here that

accounts payable balance has decreased from $36,900 and $31,200

inventory balance has increased from $43,300 and $47,000

so to find out  the operating cash flow  any decrease in current liabilities and any increase in current assets should be subtracted from net income

so

accounts payable=  current liability

and inventory = current asset

and

The operating cash flows to be reported should be computed as

Operating cash flows = Net income - Decrease in accounts payable balances - Increase in inventory balance      ....................1

Operating cash flows =

Operating cash flows =   $217,400 - ($36,900 - $31,200) - ($47,000 - $43,300)

Operating cash flows = $208,000

7 0
3 years ago
Which of the following costs would continue to be incurred even if a segment is eliminated? A. Direct fixed expenses B. Variable
stich3 [128]

Answer:

The correct answer is C. Common fixed costs.

Explanation:

A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.

This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.

Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.

7 0
3 years ago
1. _______ Allen was driving home when a deer jumped out. The deer damaged his truck.
kow [346]

Answer:

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3. _h. Insurance Company/Insurer _ ABC Insurance Inc. advises Katie that she cannot take out a policy on Brad Pitt.

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5. __o. Renter’s __ Amy decides not to purchase a new car because insurance is so expensive.

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8. _b. Bodily Injury Liability _ Janet hit a car and someone was hurt. This covers the medical expenses.

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13. __m. Premium__ Rob gets a bill in the mail from ABC Insurance Company for $125.

14. __h. Insurance Company/Insurer _ Ross contacted this business when he had an automobile accident.

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18. __i. Insurance fraud_ Tony and Chris staged an auto accident to collect claim benefits.

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Explanation:

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c. Collision

d. Comprehensive

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f. Homeowner’s

g. Insurable Interest

h. Insurance Company/Insurer

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j. Insured

k. Joint Insurance

l. Medical Payments

m. Premium

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r. Uninsured and Underinsured Motorist

s. Whole Life

4 0
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