Answer:
Standard fixed overhead rate
= Budgeted fixed overhead cost
Budgeted direct labour hours
= $45,000
15,000 hours
= $3 per direct labour hour
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Standard fixed overhead rate
= (12,000 hours - 15,000 hours) x $3
= $9,000(U)
The correct answer is B
Explanation:
In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.
<span>B.financially protect against unexpected accidents definitely the answer.</span>
Answer:
The land should be reported in the financial statements at $41,500
Explanation:
The company will report the asset value in the financial statements as their original purchase price of $40,300. Under Historical cost principle, the price of an asset on the balance sheet is always based on the original cost when the company purchased the asset. It follows the Generally Accepted Accounting Principles (GAAP) which is widely accepted. Therefore the land is reported in the financial statements at its purchase value of $41,500
