SQ3R (survey, question, read, recite, review) method
Answer:
Total debits to the inventory account would be $34,500
Explanation:
Since the company uses the perpetual inventory system. They are aware of the cost of each merchandise. Also freight costs are included in the inventory cost since this cost are needed in order to get the inventory.
Answer:
$2,000 favorable
Explanation:
The computation is shown below:
= Actual overhead cost - budgeted flexible costs
where,
Actual overhead cost = $250,000
And, the budgeted flexible cost would be
= Number of units produced × variable cost per unit + fixed cost
= 9,000 units × $8 + $180,000
= $72,000 + $180,000
= $252,000
The variable cost per unit would be
= $64,000 ÷ 8,000 units
= $8
So, the difference would be
= $250,000 - $252,000
= $2,000 favorable
