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3 years ago

A favorable direct materials cost variance occurs when the actual direct

1 answer:

8 0

A favorable direct materials cost variance occurs when the actual direct cost of the materials is lower than the budgeted cost of materials. Favorable direct materials cost variance would indicate that there was savings with the cost for the direct materials used by the company.

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Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

raketka [301]

Answer:

1. $108 million fair value of award

2. December 31, 2021

($ in millions)

Dr Compensation expenses 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expenses54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock 18

Cr Paid-in capital—excess of par (remainder) 90

Explanation:

Allied Paper Products, Inc

$6 fair value per share x 18million shares granted

= $108 million fair value of award

2. Journal entries

December 31, 2021

($ in millions)

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock (18 million shares x $1 par) 18

Cr Paid-in capital—excess of par (remainder) 90

5 0

3 years ago

Diaz Company reports the following variable costing income statement for its single product. This company’s sales totaled 55,000

kirill [66]

Answer:

Sales 3,575,000

Variable Manufacturing 1,567,500

Fixed Manufacturing 247,500

COGS: 1,815,000

gross profit 1,760,000

Variable S&A expense 302,500

Fixed S&A expense 191,250

Net Income 1,266,250‬

Explanation:

Absorption cost will consider unit cost only the manufacturing department cost the rest are period cost.

We solve for the fixed overhead per unit using produced units:

Fixed overhead $382,500 / 85,000 = 4.5

Then we add it to the variable cost of 28.5 and get a unit cost of $33

Wer multiply by the 55,000 units to get COGS

the rest will be period cost.

7 0

3 years ago

Read 2 more answers

West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond

MaRussiya [10]

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 × 7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.

7 0

3 years ago

Which of the following is an authorization from the local government to carry on an enterprise?

jeka57 [31]

The correct answer is business license.

Business license is an authorization from the local government to carry on an enterprise. Business license is needed by all operating businesses in all geographical location. Without a business license, an operating business can be closed down by government authorities with corresponding penalties.

3 0

3 years ago

The step in the formal planning process known as __________ involves studying past events, examining current conditions, and for

grigory [225]

Situation analysis

I hope this helps (:

6 0

2 years ago