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3 years ago

Which type of variance causes operating income to be lower than the budgeted operating income?

Business

1 answer:

gladu [14]3 years ago

5 0

Answer:

Favorable Variance

Explanation:

Any difference between predicted costs and actual costs is refereed to as variance. Favorable variance means the difference was in the company's favor because they predicted one level of income but actually made a higher income than expected.

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Assume large-company stocks returned 12.1 percent on average over the past 88 years. The risk premium on these stocks was 8.6 pe

True [87]

Answer:

3.5

Explanation:

7 0

3 years ago

Entitlement culture is the idea that __________________________. a. basic salaries are extra pay for sales performance rather th

Lunna [17]

Answer:

The correct answer is letter "D": bonuses are deferred salary rather than extra pay for extra sales performance.

Explanation:

In the corporate world, entitlement culture refers to the workers' beliefs that they deserve a series of privileges. This tends to happen during growth periods. Employees assume that the optimal situation of the firm has to do with their performances then, the organization owes them.

An idea that is commonly spread under such a scenario is that bonuses and commissions are deferred salaries and not extra payment for outstanding performance.

3 0

3 years ago

The journal entry Southland, Inc. would record for the return of merchandise purchased on account under a perpetual inventory sy

RideAnS [48]

Answer:

d. Debit Accounts Payable, credit Purchase Returns and Allowances

Explanation:

When merchandise is purchased, the entries required are

Debit Inventories

Credit Cash/ Accounts payable

Depending on whether cash was paid or the purchase was done on accounts. When a return of the purchased items is done, a reversal of the entries posted earlier is done by;

Debit Cash/Accounts Payable

Credit Inventory

To recognize the return of merchandise purchased earlier. However, the inventory ledger usually has a subledger for tracking returns. This is known as the purchase return subledger/account and as such, that is where the credit entry goes to when a return is made.

7 0

4 years ago

Read 2 more answers

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding an

schepotkina [342]

Answer and Explanation:

1. The computation of the departmental overhead rate for the molding department based on machine hours and for trimming department based on direct labor hours are shown below:

For molding department

= Overhead cost ÷ machine hours

= $730,000 ÷ 30,500 machine hours

= $23.93 per machine hour

For trimming department

= Overhead cost ÷ direct labor hours

= $590,000 ÷ 48,000 direct labor hours

= $12.29 per machine hour

2. Now the total overhead cost for Part A27C and Part X82B and its overhead cost per unit are as follows

Part A27C Activity Departmental For Total Overhead

Driver OH Rate each Cost

Molding Machine

Hours $23.93 Machine $122,065.57

Hour (5,100 MH × 23.93 )

Trimming Direct

Labor Hours $12.29 Direct $8,604.17

Labor Hour (700 DLH × 12.29 )

Total Overheads $130,669.74 ÷ 9,800 units

Overhead per unit $13.33

Part X82B Activity Departmental For Total Overhead

Driver OH Rate each Cost

Molding Machine

Hours $23.93 Machine $24,413.11

Hour (1,020 MH × 23.93 )

Trimming Direct

Labor Hours $12.29 Direct $43,020.83

Labor Hour (3,500 DLH × 12.29)

Total Overhead $674,33.95 ÷ 54,500 units

Overhead per unit $1.24

7 0

4 years ago

When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ___

azamat

Answer:

The Answer is B) Rises in the secondary market decreases.

Explanation:

When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, the market price of the older bond rises in the secondary market.

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate

For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.

If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.

Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.

Cheers!

4 0

3 years ago

Which type of variance causes operating income to be lower than the budgeted operating​ income?

Which type of variance causes operating income to be lower than the budgeted operating income?