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3 years ago

Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches

Business

1 answer:

shutvik [7]3 years ago

3 0

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = $20,000 Favorable (F).

Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads

= $305,000 - $300,000

= $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads

= ($5.00 × 64,000) - $300,000

= $320,000 - $300,000

= $20,000 Favorable (F)

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In the context of a job advertisement, what does 'self-starting' mean?

andrey2020 [161]

Answer:

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Explanation:

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2 years ago

Indicate whether the situation below will lead to a surplus, shortage, or neither.

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If the price of a product falls to what is considered a bargain price, a shortage would occur.

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2 years ago

The difference between a secured loan and an unsecured loan is _____.

PSYCHO15rus [73]

D. a secured loan requires collateral and an unsecured loan does not

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3 years ago

Read 2 more answers

Lansbury Inc. had the following balance sheet at December 31, 2019.

timofeeve [1]

Answer:

See explanation

Explanation:

Requirement A

See the image Below:

Requirement B

LANSBURY INC.

BALANCE SHEET

As at December 31, 2020

Assets

Cash $37,000

Accounts receivable $41,600

Investment $20,400 (Note - 1)

Plant asset $81,000

Less: Accumulated depreciation ($11,000)

Book value of Plant asset $70,000

Land $53,000

Total assets $222,000

Liabilities and Stockholders' Equity

Liabilities

Accounts payable $30,000

Notes payable $25,000

Total liabilities $55,000

Stockholders' Equity

Common Stock $120,000

Retained earnings $ 47,000 (Note - 2)

Total stockholders' equity = $167,000

Total liabilities & Stockholders' Equity = $222,000

Note - 1:

Sold investment's cost value calculation -

Selling price = $15,000

Less: Gain on sale = ($3,400)

Cost price = $11,600

Investment during 2019 = $32,000

Sale of Investment (book value) $11,600

Remaining value of Investment = $20,400

Note - 2:

Beginning $23,200

Add: Net Income $32,000

Less: Dividend ($8,200)

Ending retained earnings = $47,000

Requirement C

1. Cash flow to net income ratio:

It shows how much cash flows from operating activities during the year over a specific net income.

We know, Cash flow to net income ratio = $\frac{Cash flow from operating activities}{Net Income}$

Cash flow to net income ratio = $\frac{19,200}{32,000}$

Cash flow to net income ratio = 60%

2. Operating cash flow ratio:

It shows how much cash flows from operating activities during the year from the use of current liabilities.

We know, Operating Cash flow ratio = $\frac{Cash flow from operating activities}{Current liabilities}$

Operating Cash flow ratio = $\frac{19,200}{30,000}$

Operating Cash flow ratio = 64%

Note: Here, accounts payable is the only current liabilities as notes payable has a long-term value.

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3 years ago

At least once a year, budgeted spending should be compared against ____ spending.

Savatey [412]

Actual spending. It is important to compare the budget, which is expected spending, to actual spending to make adjustments and catch potential problems or figure out what to do extra money.

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3 years ago