Answer:
The correct answer is B) vault cash plus deposits with Federal Reserve banks minus required reserves.
Explanation:
Excess reserves refer to capital reserves held by a financial institution or institution in addition to what is required or regulated by regulatory entities or other internal controls in the countries. This practice allows them to handle external situations that affect the market, or allocate it to other items to generate profitability.
Answer:
The answer is a. Are not directly involved in operating the company.
Explanation:
There are two types of users of the financial statements. One are internal users such a st he management and the shareholders while the other being external users.
These external users are often the government, tax authorities, potential investors, banks and even the competitors.
The external users have no ability to control the company. And they are other directly involved in managing or operating the company's activities.
Answer:
a. $5,000 unfavorable
b. $24,600 favorable
Explanation:
The computations are shown below:
a. Variable overhead efficiency variance = Standard rate × (Standard hours - Actual hours)
where,
Standard variable overhead rate is $50
Actual hours is 5,500 direct labor hours
Standard hours is
= 6,000 ÷ 300 × 270 = 5,400 direct labor hours
So, the Variable overhead efficiency variance is
= $50 × (5,400 direct labor hours - 5,500 direct labor hours)
= $50 × - 100 direct labor hours
= $5,000 unfavorable
b. And, variable overhead spending variance is
= (Actual hours × Standard rate) - Actual cost
= (5,500 hours × $50) - $250,400
= $275,000 - $250,400
= $24,600 favorable