Answer:
Increases in direct proportion to the number of hours the lawn equipment is operated.
Explanation:
Variable costs refer to those costs which vary or change with the level of production output. Such costs rise as production level increases and fall with decrease in the production level.
Examples of variable costs would include direct labor cost which varies with the number of hours worked, or sales commission which varies w.r.t the volume of sales effected by a salesperson.
In the given case, the cost incurred on gasoline, which is used as fuel for lawn equipment, would be classified as a variable cost if, such cost increases when lawn equipment is operated for more hours or falls when the same equipment is operated for lesser number of hours.
Thus, such costs should increase in direct proportion to the number of hours the lawn equipment is operared, to be classified as a variable cost.
Answer:
$75,637.5
Explanation:
Sales = $225 million
Growth in sales = 10%
Inventory = $15 + 0.245(Sales)
(sales) S1 = $225,000,000 × 1.10
= $247,500,000
Inventory = $15 + 0.245 ($247.5)
= $15 + 60.6375
= 75.6375
Since this relationship is expressed in thousands of dollars,
Inventory = $75.6375 x $1000
= $75,637.5
Answer:
Dr. Allowance for Doubtful Accounts...1,200
Cr. Accounts Receivable....................................1,200
Explanation:
When a specific customer's account is identified as uncollectible, the journal entry to write off the account is:
A credit to Accounts Receivable (to remove the amount that will not be collected)
A debit to Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)
Therefore the JOURNAL ENTRIES for the $1,200 uncollectible debt will be
Dr. Allowance for Doubtful Accounts...1,200
Cr. Accounts Receivable....................................1,200
The most logical answer to me would be A, however I recommend you don’t go with my answer JUST YET because this is an educational guess. Take time to think about my answer. Sorry if it’s wrong