Answer: c. Interest expense and property taxes, other expenses, depreciation expense.
Explanation:
In terms of deductibility, interest expenses such as mortgages take precedence along with taxes on property.
After this comes other expenses starting first with direct expenses incurred in providing Jamison's services then there will be other expenses such as insurance, periodic repairs and admin expenses.
At the bottom of the hierarchy is depreciation expense which is the last expense that can be deducted
Answer:
No
Explanation:
The receipt received from customer is view as expense and expense is not a revenue.
The receipt can be issue after purchase or return of good. so in this particular case its not a revenue. Thank you
Answer: E
Explanation:
E
Sales Volume Variance equals (actual sales volume - budgeted sales volume) * budgeted sales price
Answer:
1. $10
2. The fixed overhead budget variance and volume variance is $4,000 unfavorable and $10,000 favorable respectively
Explanation:
1. The computation of the predetermined overhead rate for the year is shown below:
Predetermined overhead rate = (Total estimated budgeting fixed manufacturing overhead) ÷ (estimated direct labor-hours)
= $250,000 ÷ 25,000 hours
= $10
2. The computation of the fixed overhead budget variance and volume variance is shown below:
Fixed overhead budget variance = Actual fixed overhead cost for the year - Total budgeted fixed overhead cost for the year
= $254,000 - $250,000
= $4,000 unfavorable
Volume variance = (Budgeted direct labor hours - standard direct labor hours) × predetermined overhead rate
= (25,000 hours - 26,000 hours) × $10
= $10,000 favorable