Answer:
Rate variance = $250 favorable
Explanation:
<em>The variable overhead rate variance is the difference between the actual variable cost and the standard variable overhead cost the actual actual hours used.</em>
<em>We would compare the actual cost to the standard cost of the actual hours used . This is done below as follows:</em>
$
4,200 hours should have cost (4200 × 3.75 ) 15,750
but did cost <u>15,500</u>
Rate variance <u> 250</u> Favorable
Note the actual hours of 4,200 cost $250 less than it should be have cost . Hence the variance is favorable
Rate variance = $250
Answer:
Bad debt expense is recorded in the same year as the credit sale.
Explanation:
Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.
This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.
<span>The breakeven point in units for Fuschia is 7000 units.
You find this figure by taking the total fixed costs (84,000) and dividing it by the contribution margin (12). This gets you to the breakeven point that the company can expect.</span>
Answer:
A. Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. 31
Dr Factory labour $61,300
Cr Factory wages $61,300
Explanation:
Preparation of the Journal entries for Sunland Company
A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:
Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:
31
Dr Factory labour $61,300
Cr Factory wages $61,300
Flotation costs are the amounts that are significantly required for the issuing of various securities in a company such as legal fees and registration fees. In addition, the type of funding that would mostly likely incur flotation costs in Webee Ltd. would be by issuing common stocks.
