Answer:
c Claim their expenses as deductions for AGI.
Explanation:
Their costs are specified in Schedule C, not Form 2106 (Option). Although subject to Social Security tax, they are not subject to income tax withholding (option). Legitimate employees are not common law employees (selected). Costs for AGI will be reduced
Answer:
sales revenue 29,000 debit
income summary 29,000 credit
income sumamry 10,520 debit
operating expenses 6,200 credit
income tax expense 4,320 credit
income summary 18,480 debit
retained earnings 18,480 credit
Explanation:
To close the temporary account we will use an auxiliar account called income summary.
We will post expense in the credit against income summary in the debit
for revenues we will do the other way around, debit aainst income summary on credit.
Last, we transfer the balcne of this account into retained earnigns.
<u>balance of retained earnings: </u>
29,000 - 10,520 = 18,480
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
Answer:
The question is missing information, however the way to approach the required is presented below in the explanation
Explanation:
When calculating variances it's always important to flex the budgeted information to standard form so we're comparing apples with apples. If we use the actual budgeted figures we can distort the variances and comparisons of information may be useless. For instance if we produce 40 units but budgeted was 50 units we need to work out what was the budgeted cost for 40 units and compare that to the actual cost of 40 units. That is what is meant by flexing to the standard form.
A) The fixed overhead spending variance is the difference between the budgeted and actual fixed overhead expense. This is calculated as follows
Actual fixed overhead - Budgeted fixed overhead = Fixed overhead spending variance $
B) The fixed overhead volume variance is calculated as follows;
Budgeted fixed overhead rate – Fixed overhead rate applied to the units (quantity of production)
C) Variable overhead spending variance is calculated as follows;
The variable overhead spending variance is the difference between the actual and budgeted rates of expenditure of the variable overhead.
Actual hours worked x (actual overhead rate - standard overhead rate)
= Variable overhead spending variance
D) Variable overhead efficiency variance is calculated as follows;
The variable overhead efficiency variance is the difference between the actual and budgeted hours worked. The standard variable rate per hour is used for this and must be calculated.
Standard overhead rate x (Actual hours - Standard hours)
