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Solnce55 [7]
3 years ago
14

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of

December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,640. The spending variance for vehicle operating cost in December would be closest to:
Business
2 answers:
antiseptic1488 [7]3 years ago
6 0

Answer:

$352  unfavorable variance

Explanation:

The spending variance operating cost in December can be ascertained by taking the difference between the actual vehicle operating cost of $7,640 and the budgeted vehicle operating cost using actual level of activity

Budgeted vehicle operating cost using actual level of activity=fixed vehicle operating plus variable multiplied by actual level of activity.

fixed vehicle operating cost is $2,850

variable cost per snow day is $317

actual level of activity is 14 snow days

spending variance=$7,640-($2850+($317*14))

                              =$7640-$7288 =$352

Korvikt [17]3 years ago
5 0

Answer:

$352 unfavorable

Explanation:

The spending variance for vehicle operating cost in December can be calculated the difference between actual cost and budgeted vehicle operating cost using actual activity.

As per given data

Budgeted cost = $2,850 + $317 x 14 = $7,288

Actual cost = $7,640

Spending variance = $7,640-$7,288

Spending variance = $352

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Greening refers to: a. Answer the need for more carbon dioxide in our air. b. firms acquiring more green backs (U.S. dollars) fr
Ipatiy [6.2K]

Answer:

The correct answer is letter "C": finding ways to lessen the harm on our environment.

Explanation:

Greening implies analyzing what factors of businesses are harmful to the environment where the firm carries out its operations so that impact can be reduced in favor of the natural atmosphere. To achieve that goal, companies take several steps such as <em>reducing power and water service usage, recycling </em>or <em>planting trees</em> in affected environments.

5 0
3 years ago
Cash received before services are performed may be recorded as a debit to a cash account and a credit to a liability account is
Lana71 [14]

Answer:

The correct answer is: Unearned Revenue.

Explanation:

Unearned Revenues are advance payments that a company or individual collects for products and services that it has not yet rendered or delivered. Other terms for unearned revenue are advanced payments or deferred revenue. Unearned income must be debited to a cash account and credited to a liability account in compliance with the Generally Accepted Accounting Principles (GAAP).

7 0
3 years ago
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1
zloy xaker [14]

Answer:

Debit unearned rent for $3,375

........Credit rent revenue for $3,375

Explanation:

The adjusting entry made by Fragmental Co. on December 31 is calculated as;

Number of months from October 1st to December 31st = 3 months

Rent revenue earned for 3 months = $1,125 × 3 = $3,375

Therefore, the adjusting entry would be;

Debit unearned rent for $3,375

..........Credit rent revenue for $3,375

5 0
3 years ago
Century Motors was awarded a bid to build an energy-efficient motor for a large government heating and cooling project. The requ
algol [13]

By employing such an organizational structure, Century Motors most likely set up a <u>Matrix Organization. </u>

A Matrix organization:

  • Incorporates people from multiple departments and functions
  • Will see people answering to multiple managers of those various departments
  • Usually disband after a project is done

The actions of Century Motors are in line with a Matrix Organization in that people from multiple functions were incorporated into the team and the team will disband when the project is done.

We can therefore conclude that this is a matrix organization.

<em>Find out more at brainly.com/question/7437866.</em>

5 0
3 years ago
Aurillo Equipment Company (AEC) projected that its ROE for next year would be just 6
Drupady [299]

Answer:

Aurillo Equipment Company (AEC)

If AEC refinances its high interest bonds, its projected new ROE will be:

= 15.6%

Explanation:

a) Data and Calculations:

Total debt = $200,000

Debt ratio = 80%

Total assets = $250,000 ($200,000/80%)

Equity = $50,000 ($250,000 - $200,000)

Old interest rate on old debt = 14%

New interest rate on refinanced debt = 10%

Total interest = $20,000 ($200,000 * 10%)

Sales revenue = $300,000

EBIT =        $33,000

Interest       20,000

Before tax $13,000

Tax =             5,200 (40% of $13,000)

Net income $7,800

ROE = Net income/Equity * 100

= ($7,800/$50,000 * 100)

= 15.6%

8 0
3 years ago
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