Answer:
$1,589 favorable
Explanation:
Calculation to determine what the controllable variance for the month was:
Using this formula
Overhead Controllable Variance =(Budgeted overhead per unit x standard number of units) - Actual overhead expense
Let plug in the formula
Controllable variance=(6,040*$2.10)-$11,095
Controllable variance=$12,684-$11,095
Controllable variance=$1,589 favorable
Therefore the controllable variance for the month was:$1,589 favorable
Answer:
Cheesy Burger should hire four workers
Explanation:
Number of Total revenues Marginal Marginal cost
workers per hour revenue per worker
1 $30 $30 $9
2 $48 $18 $9
3 $62 $14 $9
<u>4 </u> <u>$72
</u> <u> $10 </u> <u>$9</u>
5 $80 $8 $9
6 $84 $4 $9
The marginal revenue generated by the fourth worker ≥ marginal cost per worker ($10 ≥ $9).
But the marginal revenue generated by the fifth worker < marginal cost ($8 < $9).
Answer:
Journal entries will be as follows;
Explanation:
1.The machine purchased is an asset so machinery a/c will be debited.
The cash used to purchase the machine is an outflow so it's credited on the cash a/c
2. Electricity wiring on the machine is part of the acquisition cost, hence we debit machinery account and the cash paid for that is credited on cash a/c
3. Cost of securing it in place is also an operating cost hence you debit machinery a/c and credit the cash used to pay for it in the cash a/c
<u>Journal entries</u>
1. Machinery account Dr 192,000
Cash account Cr 192,000
2.Machinery account Dr 8,000
Cash account Cr 8,000
3.Machinery account Dr 1,600
Cash account Cr 1,600
You should practice get a friend or another teacher to review your work and make sure not too look shy good luck!