False. Interest rates rise as the expected inflation also increases.
Answer:
the total period cost for the month under variable costing is $46,700
Explanation:
Product Cost Under Variable Costing = Direct Materials + Direct Labor + Variable Overheads
Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing Overheads (Variable and Fixed)
<u>Calculation for the total period cost - Varible Costing</u>
Variable selling and administrative expense ( $ 7× 1,070 Units) $ 7,490
Fixed manufacturing overhead $ 13,530
Fixed selling and administrative expense $ 25,680
Total period cost for the month $46,700
Answer: D) Favorable Unfavorable
Explanation:
To begin, it is worthy of note that in Variance, if something is said to be Favourable, it means a negative Variance because less resources than planned were spent. When it is Unfavourable, it means a positive balance variance.
Now, The formula for Labour Rate Variance is as follows,
LABOUR RATE VARIANCE=(ACTUAL RATE-STANDARD RATE)*ACTUAL HOURS WORKED
Seeing as the old workers were being paid $18, and the new office ones were paid $10, we can see that to be the actual rate was less than the standard rate. This would mean that there was a FAVOURABLE balance.
Labour Efficiency is calculated in a similar way,
LABOUR EFFICIENCY VARIANCE=(ACTUAL HOURS WORKED-STANDARD HOURS)*STANDARD RATE.
Now, these are Office workers not assemblyline workers. They do not have the experience to work in such a way that they produce as fast or as efficiently as their striking Assemblyline colleagues.
This would then mean that their actual hours will be MORE than the standard rate which can only lead to an UNFAVOURABLE BALANCE.
Answer:
1. Situation is that a Stockholder has filed a lawsuit against C corporation.
Accounting treatment: Neither record nor disclose any liability.
Since the liability is not at all possible, it should be neither recorded nor disclosed.
2. Situation: F signed a 60 days, 10% note when it purchased items from another company.
Account treatment: Record the liability on the balance sheet.
Real liability that is both certain and the liability amount can also be reasonably estimated. It should be recorded on the balance sheet.
3. The EPA notifies S co that a state where it has a plant is filing a lawsuit.
Account treatment: Disclose the liability in a financial statement footnote.
The liability is probable but not certain and liability amount can also be reasonably estimated. It should be disclosed in financial statement footnote.
4. Situation: Company manufactured and sold products to a retailer that later sold product to consumer.
Account treatment: Record the liability on the balance sheet.
Real liability that is both certain and the liability amount can also be reasonably estimated. It should be recorded on the balance sheet.
Answer:
$629,000
Explanation:
The net cash flow from operating activities is the net income plus depreciation, minus the increase in accounts receivable as well as the decrease in accounts payable.
Net income is $620,000
depreciaton expense $47,000
Increase in accounts receivable ($11,000)
decrease in accounts payable ($27,000)
Net cash flow from operations $629,000
The increase in accounts receivable denies the business of additional cash,hence it is deducted ,the same applies to increase in accounts payable
