Garrett’s Tea Corp. plans to increase profits by providing custom tea blends to the various countries it sells to. The company w
1 answer:
You might be interested in
Answer:
A. $5,460
Explanation:
Expected rate of defects = 7%
Average repair cost = $70
Total sales = 1,200 units
Actual defective units = 6
Liability for product warranties (L) at month-end should be the difference between the expected warranty costs (EW) and the actual warranty (AW) costs:
Liability for product warranties at month-end should be $5,460.
Answer and Explanation:
The Preparation of the company's revenue and spending variances for December is prepared below:-
The report with respect to the company revenue and spending variance is presented in the attachment below
The revenue refers to the sales of the company
And, the spending variance refers to the difference between the actual amount of expenses incurred and the budgeted amount of expenses incurred. The same is shown in the below attachment.
