Answer:
Please find the detailed answer as follows:
Explanation:
a) Predetermined overhead rate = Estimated manufacturing overhead cost / Estimated total units in the allocation based
Predetermined overhead rate = 600,000 / 500,000 = 1.2 perunit
b) Total fixed cost spending variance = Actual fixed overhead cost - Estimated overhead cost
= 599,400 - 600,000
= 600 (F) Favourable
c) Total fixed cost volume variance = Actual fixed overheads - Estimated fixed overheads
Actual fixed overheads = Estimated fixed overhead rate * Actual units produced
= 1.2 * 508,000 = $609,600
Total fixed cost volume variance =$ 609,600 - $600,000 = $9600 (F) Favourable
Answer:
$200
Explanation:
When Supplies inventory are purchased, a debit is posted to Supplies inventory and a credit to cash account or accounts payable.
As the inventories are used, debit Supplies expense and credit Supplies inventory account.
Given that $1,000 was the debit in the books and $800 per count, it means the books balance needs to be written down to the physical balance. The difference to be posted
= $1,000 - $800
= $200
This will be done by
Debit Supplies expense $200
Credit Supplies Inventory $200
Being entries to record inventory used in July
Answer: A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT
Explanation:
A is the correct option because,
N = 12
The period is 3 years but the payments are quaterly so the actual period is;
= 3 years * 4
= 12 quarters/ periods.
I = 8/4
The interest rate is 8% but this is stated as a Yearly value which needs to be adjusted to a quarterly value by dividing it by 4.
PV = 25,000
The Present Value of the loan is $25,000 because this is the amount that Art's Market was given in the present.
When all of this is inputted into the calculator, the answer will be; PMT = $2,363.99.
Answer:
According to the flexible budget, income from operations will increase from $557,000 to $915,000 if the units sold increase from 15,000 to 18,000 during 2017.
Explanation:
sales revenue should increase to $4,050,000
cost of goods sold should increase to: ($2,237,000)
- direct materials $1,260,000
- direct labor $180,000
- machinery repairs $54,000
- depreciation (fixed) $315,000
- utilities $228,000
- management salaries $200,000
gross profit $1,813,000
S&A expenses increase to: ($898,000)
- packaging $72,000
- shipping $108,000
- sales salaries (fixed) $260,000
- advertising expense (fixed) $127,000
- adm. salaries (fixed) $241,000
- entertainment (fixed) $90,000
income from operations $915,000
Answer:
The new real interest rate is 15%
and the lender was hurt.
O 15%; lender
Explanation:
a) Data and Calculations:
Fixed nominal interest rate = 13%
Real interest rate for the bank's profit margin = 10%
Inflation rate = 3% (13% - 10%)
Unanticipated inflation rate = 7%
Nominal interest rate = 17% (10% + 7%)
But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.
