<u>Joshua is right because fixed costs are unavoidable but marginal costs are not.</u>
<u>Explanation</u>:
Decision making plays an important role while considering the development of the organization. The officials in the company should act smartly in making decisions during crucial situation.
<u>Marginal cost </u>is the cost added to the total cost while producing additional units. <u>Fixed cost </u>is the cost of the product that does not change with the increase or decrease in the quantity of the products.
In the above scenario, Jasmine and Joshua were discussing about the cost of the products that are produced in their manufacturing plants. They were discussing about the marginal cost and fixed cost.
Answer:
correct option is d. $4800 U
Explanation:
given data
product requiring = 3 direct labor hours
standard rate = $ 16 per direct labor hour
produced using = 8700 direct labor hours
actual payroll = $135720
to find out
labor quantity variance
solution
we get here labor quantity variance that is express as
Direct labor quantity variance = (standard hours worked for actual production - actual hour worked) × standard rate per direct labor hour ...................1
here standard hours worked for actual production will be as
standard hours worked = standard hours required per unit of production × actual units produced
standard hours worked = 3 × 2800
standard hours worked = 8400 hours but we have given actual work hour 8700 direct labor hours
so put all value is equation 1 we get
Direct labor quantity variance = ( 8400 - 8700 ) × $16
Direct labor quantity variance = $4800 unfavorable
so correct option is d. $4800 U
Answer:
Explanation:
1. Accounts Payable - Current liabilities in liabilities side
2. Accounts Receivable - Current asset in assets side
3. Accumulated Depreciation—Building - Property, plant, and equipment in assets side
4. Cash - Current asset in assets side
5. Common Stock - stockholders' equity
6. Note Payable (due in ten years) - Long-term liability in liabilities side
7. Supplies - Current asset in asset side
8. Wages Payable - Current liabilities in liabilities side
Answer: $66, 600
Explanation:
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $373,040 ÷ 60,800 direct labor-hours = $6.3 per direct labor-hour Overhead over or underapplied Actual MOH = $432,000 Applied MOH = $6.3 x 58000 = $365,400 Underapplied MOH = 432,000-365,400 = $66,60
Answer:
Paid-in Capital in Excess of Par Value will be credited for $120,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $140,000
To common stock (4,000 shares × $5) = $20,000
To Paid-in Capital in Excess of Par Value $120,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
