Explanation:
https://vt.tiktok.com/ZGJkC8ULE/
Answer:
Direct labor time (efficiency) variance= $22,000 favorable
Explanation:
<u>To calculate the direct labor efficiency variance, we need to use the following formula:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (3*8,000 - 22,000)*11
Direct labor time (efficiency) variance= (24,000 - 22,000)*11
Direct labor time (efficiency) variance= $22,000 favorable
Answer: The entry to write off this account would be <u><em>debit Bad Debt Expense; credit Accounts Receivable.</em></u>
Here in this case Lowrey uses the direct write-off method of accounting for uncollectible accounts receivable.
<u><em>Therefore the correct option in this case is (b).</em></u>
Answer:
b) $11,760
Explanation:
Using the straight-line deprecition method, the annual depreciation mount for an asset is an equal amount which is equal to
Annual depreciation = Cost of the assets - Salvage value/ Expected useful life
<em>Cost of assets include the purchase price plus every other costs incurred to bring them for the intended use.</em>
<em>Cost of equipment</em> = 60,000 + 2,800 + 8,000 =70,800
<em>Annual depreciation</em> = (70,800 - 12,000)/5
= $11,760
Answer: $2550
Explanation:
Note that the probabilities of total loss and 50% damage were tripled and the probability of no fire has therefore changed to:
1 - 0006 - 0.024 = 0.97.
The company wants to keep same annual gain from the policy ($750), and the question now is, what would the new premium (N) be which will satisfy this? To get this, we need to solve the equation for:
N:750 = (N - 100,000)(0.006) + (N - 50,000)(0.024) + N(0.97)
Thus, 750 = N - 600 - 1,200, or N - 1,800. Therefore,N= 750+1,800= 2,550.
To account for the added risk which the insurance company is taking by continuing insuring the customer, the premium changes from $1,350 to $2550