Answer:
$2,450 Unfavorable
Explanation:
The computation of material price variance is shown below:-
Material price variance = ( Standard Price - Actual Price ) × Actual Quantity of materials purchased
= $17.40 - ($124,250 ÷ 7000) × 7,000
= ($17.40 - $17.75) × 7000
= $2,450 Unfavorable
Therefore for computing the material price variance we simply applied the above formula.
Answer:
500 dollars per week will be their opportunity cost.
Explanation:
The opportunity cost is the best rejected alternative for each factor. In this case, as we are checking for Amanda's time it will be the lost wages from going to college
If Amanda invest saving, the alternative investment interest will be the opportunity cost.
If it use a house, the alternative opportunity cost will be the proceeds from renting.
Answer:
Explanation:
The journal entries are shown below:
a)
Investment in bonds Dr A/c$120000
Interest receivable Dr A/c$ 1000
To Cash A/c $121000
(purchased of 5% bonds with accrued interest of $1000 on the bonds for cash is recorded)
b)
Cash Dr. A/c $3000 ($120,000 × 5% × 6 months ÷ 12 months)
To Interest receivable A/c $1000
To Interest Revenue A/c $2000
(Being the first semiannual interest payment is received)
c) Cash Dr A/c $61100 ($60,000 × 101 + $500)
To Investment in bonds $60000
To Interest Revenue $ 500
To Gain in sale of investment $600
( Being the sale of bond with accrued interest of $500 is recorded and the remaining amount will be credited to the gain in sale of investment)
Answer:
$1,375
Explanation:
The computation of the dealer's gross trading profit for this security is shown below:
= (Ask price of the bond - Bid price of the bond)× (number of bonds traded in that day)
= ($1003.25 - $1,000.50) × (500 bonds)
= $2.75 × 500 bonds
= $1,375
Basically we take the difference and then multiplied it by the number of bonds traded
Answer:
the depreciation expense on the equipment will be 1,785 for tax purpose.
Explanation:
We will look into the MACRS (Modified Accelerated Cost Recovery System)
table for a property of seven years placen into service in the 4th quarter:
Which give us 3.57%
now we multiply the basis by the coefficient and get the value for depreciation
50,000 x 3.57% = 1,785 depreciation expense under MACRS